ACKNOWLEDGEMENT

First and Foremost, I would like to express my gratitude towards ITC Limited
for giving me this opportunity to work as a summer intern for the duration of
one and half month as a part of training of our course. , I would take this
opportunity to express my profound gratitude and deep regards to all those who
contributed in bringing my internship project to a successful closing. I am
obliged to acknowledge the exemplary guidance , monitoring and constant
encouragement throughout the course of this project of the following people.

Company Mentor :- Mr. Sachin Gautam

I would like to thank my company guide along with my employees for giving me
this opportuity to understand the marketing and operations practices in the
FMCG limited Sector.

I would also like to express my profound and sincere gratitude to Anand

Engineering College for providing me with the opportunity to do my project at
the ITC Limited. Throughout the time I had Wonderful experience about this
project. I also thank to my all faculty members for their suggestions & Advises.

Also, I am thankful to my parents and family members who are my constant

source of inspiration in every field of life and due to them I am whatever I am
today.

Thanking you.

Page 1 of 47
 ABSTRACT
This project has been a valuable learning experience, allowing me to apply and enhance my
analytical skills in a real-world FMCG business environment. The project can be broadly
divided into two major parts:

Stockist Engagement and Communication Analysis: The first part examines ITC
Limited's engagement with stockists, evaluating the effectiveness of communication
channels and identifying gaps. It includes an analysis of the adoption and usage of IT tools
like the EzeePay app, as well as benchmarking ITC's practices against industry competitors.
The findings provide actionable insights into optimizing direct communication with
stockists.

Recommendations for Improvement: The second part focuses on providing strategic

recommendations to enhance stockist engagement. Topics such as multi-channel
communication strategies, the role of digital tools, and the implementation of incentive
programs are discussed systematically. These suggestions are backed by data and illustrated
through charts and graphs for better clarity.
ITC Limited has a significant position in the FMCG sector, making it essential to ensure that
its communication with stockists is seamless and effective. The project also underscores the
importance of digital tools in streamlining operations and improving stockist satisfaction.
This report is structured to cater to both industry experts and readers with limited
background knowledge. The insights derived can aid ITC Limited in strengthening its
stockist relationships and achieving its strategic objectives.

Page 2 of 47
ITC LIMITED

Page 3 of 47
Table of Contents

S.No Particular Page No.

1. Executive Summary 5
2. Company Profile 6-8
3. Mission and Vision of Company 9
4. Objectives of the Company 10
5. Policy and Procedure of Company 11-14
6. Competitors of ITC Limited 15-20
7. SWOT Analysis of ITC Limited 20-23
8. Products and Services of Company 24-27
9. Literature Review 28-30
10. Objectives of the study 31-33
11. Research Methodology 34-36
11. Analysis and Findings 37-39
12. Discussion and Interpretation 40-41
13. Recommendations 42
14. Conclusion 43-44
15. Learning Experience 45
16. References 46
17. Appendences 47

Page 4 of 47
Executive Summary
This report explores the critical aspects of optimizing direct engagement and communication
with FMCG stockists, focusing on ITC’s innovative Floor Boy Activation Program. The
program, launched in April 2023 in the Saharanpur marketing branch, aims to enhance the
weighted performance of stockist channels by fostering better communication, increasing
digital adoption, and motivating stockists through targeted incentives.

The Fast-Moving Consumer Goods (FMCG) sector is driven by an extensive distribution

network, with stockists playing a crucial role in ensuring product availability at the
grassroots level. Effective communication and engagement with stockists are essential to
drive sales, increase loyalty, and improve operational efficiency. Despite the sector's reliance
on stockists, challenges such as low digital literacy, inefficiencies in communication
methods, and limited participation in incentive programs hinder optimal performance.

The Floor Boy Activation initiative addresses these challenges by offering incentives like
branded merchandise and product bundles upon meeting sales targets. It also integrates
digital platforms such as the Ezeepay app, facilitating seamless transactions and real-time
reward distribution. This program has shown promise in boosting engagement and
compliance, with stockists achieving better sales results and demonstrating increased trust in
ITC's processes.

This report presents a detailed analysis of pre- and post-program performance metrics,
emphasizing the importance of direct engagement strategies. Data highlights include
significant improvements in participation rates, app compliance, and average sales per
stockist. Furthermore, the report identifies gaps in the current engagement model and
provides actionable recommendations to overcome them.

Proposed solutions encompass comprehensive training programs for stockists, enhanced

incentive structures, and the adoption of advanced technologies like multilingual support and
CRM systems. Benchmarking against competitors reveals best practices, such as
gamification and regular stockist meetups, which can be integrated into ITC’s strategy for
better results.

The impact assessment section outlines key success metrics, including numeric achievements
of program targets, increased usage of digital apps, and overall satisfaction among stockists.
The study concludes with a call to action for ITC to continue leveraging technology and
data-driven approaches to strengthen its stockist relationships and achieve sustained growth.

Ultimately, this report serves as a comprehensive guide for optimizing communication and
engagement in the FMCG stockist ecosystem, ensuring ITC’s continued leadership in a
competitive market landscape. Page 5 of 47
Company Profile
ITC Limited, established in 1910 and headquartered in Kolkata, is one of India's leading
diversified corporations. Initially formed as the Imperial Tobacco Company of India
Limited, it was later renamed ITC Limited to reflect its diversified business operations
beyond tobacco. ITC operates across multiple sectors, including FMCG, hotels, paperboards,
packaging, printing, agri-business, and IT. Its FMCG division boasts popular brands like
Aashirvaad, Sunfeast, Bingo!, Fiama, and Classmate, catering to diverse consumer needs.
ITC is a pioneer in sustainability, recognized for being carbon-positive, water-positive, and
solid-waste recycling positive. The company has an extensive rural and urban distribution
network, a significant global presence, and is a leader in eco-friendly product innovation.

In terms of Porter's Five Forces, the threat of new entrants is low due to ITC's strong brand
equity and substantial entry barriers in capital and regulatory requirements. The bargaining
power of suppliers is also low as ITC’s backward integration in agri-business and
paperboards reduces supplier dependency. The bargaining power of buyers is moderate,
given the availability of substitutes and price sensitivity in the FMCG sector, although ITC’s
strong brand loyalty mitigates this. The threat of substitutes is moderate, especially with
evolving consumer preferences for healthier or more sustainable products, but ITC’s
innovation in quality and eco-friendly offerings reduces substitution risks. Finally, industry
rivalry is high, driven by intense competition from major players like Hindustan Unilever
and Nestlé, and market saturation in sectors like FMCG and hospitality. Despite these
challenges, ITC remains a market leader due to its strategic focus on innovation,
sustainability, and customer satisfaction.

Page 6 of 47
Threat of New Entrants:

The threat of new entrants in the FMCG sector for ITC Limited is relatively low to moderate
due to various structural and operational barriers:

 Barriers to Entry: ITC’s strong brand equity and vast economies of scale act as
significant deterrents for new players. Its established reputation across segments like
food, personal care, and stationery creates a high barrier for new competitors to gain
consumer trust.
 Capital Requirement: Significant financial resources are needed to compete with
ITC’s well-established supply chain, manufacturing facilities, and research
capabilities. Entering the market demands heavy investment in infrastructure,
marketing, and compliance.
 Government Policies: Regulatory challenges, particularly in tobacco and food safety
compliance, further increase entry barriers. The need for KYC adherence in certain
operations adds another layer of complexity.
 Distribution Network: ITC’s extensive and deeply entrenched distribution network in
rural and urban markets ensures swift market penetration, making it difficult for new
entrants to replicate.
 Impact: Combined, these factors result in a low to moderate threat of new entrants.

Bargaining Power of Suppliers:

ITC has effectively managed the bargaining power of its suppliers by leveraging its
integrated operations and widespread sourcing capabilities:

 Key Inputs: ITC relies on agricultural produce for food products, paper for
packaging, and other raw materials. The diversity of its product portfolio ensures that
it sources materials from a wide range of suppliers.
 Supplier Dependence: The company collaborates with numerous farmers,
cooperatives, and vendors, reducing dependency on any specific supplier. This large-
scale sourcing limits the influence of individual suppliers.
 Backward Integration: ITC’s involvement in agri-business and paperboard
manufacturing significantly reduces its reliance on external suppliers. It owns many of
the key processes, ensuring cost efficiency and better quality control.
 Impact: The bargaining power of suppliers is low, given ITC’s operational
independence and strong supplier network.

Bargaining Power of Buyers:

The bargaining power of buyers varies across ITC’s diverse product segments but is
generally moderate:

 Consumer Demand: In the highly competitive FMCG sector, consumers have access
to a wide variety of substitutes for food, personal care products, and stationery, giving
them significant choice.

Page 7 of 47
  Brand Loyalty: Despite the availability of substitutes, ITC has built a loyal customer
base through consistent quality and brand trust. Brands like Aashirvaad and Classmate
enjoy high consumer preference.
 Price Sensitivity: While consumers in the FMCG segment are price-sensitive, ITC’s
premium positioning in certain product categories enables it to maintain its pricing
power.
 Retailers’ Influence: Retailers and distributors also play a role in influencing buyer
behavior, but ITC’s direct engagement initiatives help maintain their support.
 Impact: Buyer power is moderate due to strong competition but offset by ITC’s brand
equity and distribution strength.

Threat of Substitutes:

The threat of substitutes is moderate and depends on product innovation and customer
preferences:

 Product Range: ITC operates in sectors with multiple substitutes. For example, snack
brands compete with local and international players, while personal care products face
stiff competition from both premium and affordable brands.
 Differentiation: ITC’s focus on innovation, quality, and sustainability helps mitigate
the risk of substitutes. Products like Sunfeast biscuits and Fiama personal care items
have distinctive features that make them stand out.
 Customer Preferences: Growing demand for healthier food options, eco-friendly
packaging, and sustainable practices could lead consumers to explore alternatives if
ITC does not align with these preferences.
 Impact: While the threat of substitutes remains moderate, ITC’s strong emphasis on
differentiation and innovation reduces its impact.

Industry Rivalry:

Industry rivalry in ITC’s sectors is intense, given the presence of formidable competitors and
a rapidly evolving market landscape:

 Competition: ITC faces significant competition from multinational corporations like

Hindustan Unilever, Procter & Gamble, and Nestlé, as well as regional and local
brands.
 Market Saturation: High market penetration in FMCG and hospitality leads to
aggressive competition. Companies frequently introduce new products and
promotional offers to attract consumers.
 Innovation and Sustainability: ITC differentiates itself by focusing on innovation
and eco-friendly practices. Its commitment to sustainability and quality enables it to
compete effectively.
 Advertising and Brand Recall: Intense marketing campaigns and brand visibility
efforts increase competition. ITC invests heavily in advertising to maintain its
competitive edge.
 Impact: Industry rivalry is high, but ITC’s diversification, innovation, and
sustainability strategies provide resilience and a competitive advantage
Page 8 of 47
Mission and Vision of ITC Limited

Success Sutra of ITC

The success of ITC Limited is guided by a set of core values and principles that have defined
its growth trajectory. The company operates on the principles of Trust, Integrity, Dedication,
Commitment, Enterprise, Hard Work, Innovation, Sustainability, Teamwork, Empathy, and
Excellence. These values serve as the foundation for ITC’s business strategy, shaping its
leadership position in multiple sectors.

Growth drivers
for ITC LImited

Our Mission:
To enhance the quality of life of all stakeholders through sustainable and inclusive growth,
driven by innovation, excellence, and the creation of enduring value for society and the
environment.

Our Vision:
To sustain ITC’s position as one of India’s most valuable corporations through world-class
performance, creating enduring value for all stakeholders.

Our Promise:
To deliver high-quality products and services that consistently exceed customer expectations,
driven by innovation, sustainability, and integrity in all business operations. ITC is
committed to fostering trust, long-term partnerships, and inclusive growth for society.

Page 9 of 47
Objective of the company
 Achieve global leadership in sustainability by adopting eco-friendly practices across
business operations.
 Create long-term value through corporate social responsibility initiatives.
 Promote rural development and foster inclusive growth in communities.
 Enhance product innovation to meet evolving consumer needs.
 Drive operational efficiency across all business verticals.
 Attain market leadership in sectors such as FMCG, paperboards, packaging,
hospitality, and agribusiness.
 Implement sustainable sourcing to ensure ethical and environmentally responsible
supply chains.
 Practice environmental stewardship to reduce the company's carbon footprint.
 Minimize waste and optimize resource utilization for greater sustainability.
 Offer health-conscious and high-quality products to consumers.
 Create consistent value for shareholders through strategic growth initiatives.
 Build strong, trusted brands that resonate with consumers.
 Leverage technological advancements, research, and development to maintain market
competitiveness.
 Uphold ethical business practices and responsible marketing for the highest standards
of governance.
 Invest in renewable energy, promote social inclusion, and drive progress across
economic, environmental, and social dimensions.

Page 10 of 47
Policy and Procedure of ITC Limited
ITC Limited, one of India's leading diversified conglomerates, has a comprehensive set of
policies and procedures that govern its operations, corporate governance, business ethics, and
employee engagement. These policies and procedures are designed to ensure alignment with
ITC’s values, long-term objectives, and commitment to sustainability. Below is an outline of
some key policies and procedures followed by ITC across its various business segments.

1. Corporate Governance and Ethical Conduct

ITC adheres to the highest standards of corporate governance, emphasizing transparency,

accountability, and ethical business practices. The company’s governance structure includes
an independent board, committees, and internal audit mechanisms to ensure compliance with
legal and regulatory requirements.

 Code of Conduct: ITC’s employees, board members, and stakeholders must adhere to
a strict Code of Conduct that mandates ethical behavior, integrity, and transparency in
all business dealings. This code includes provisions on conflict of interest, non-
discrimination, and proper use of company resources.
 Whistleblower Policy: ITC has established a Whistleblower Policy to protect
employees who report unethical practices. Employees are encouraged to report any
malpractices without fear of retaliation.

2. Human Resource Management

ITC's policies related to human resources are designed to foster a culture of inclusion, skill
development, and employee well-being. The company strives to provide a supportive work
environment that encourages growth, leadership, and performance excellence.

Page 11 of 47
  Recruitment and Selection: ITC’s recruitment policy ensures fairness and
transparency in the hiring process, providing equal opportunity to all candidates.
Selection criteria are based on qualifications, skills, experience, and organizational fit.
 Employee Development: ITC emphasizes continuous learning and development.
Employees have access to various training programs aimed at improving professional
skills and competencies.
 Performance Management: ITC follows a performance-driven culture where
employees are regularly evaluated based on clear performance metrics. Rewards and
recognition programs are linked to individual and team achievements.

3. Sustainability and Environmental Responsibility

Sustainability is at the core of ITC’s operations. The company’s environmental policies

focus on reducing the environmental impact of its business activities and promoting
sustainable practices.

 Sustainable Sourcing Policy: ITC ensures that its sourcing practices, especially in
raw materials like paper, tea, and food, are sustainable and ethical. The company
works closely with suppliers to ensure they adhere to environmental and social
standards.
 Energy Management: ITC aims to reduce its carbon footprint through energy-
efficient technologies and renewable energy sources. The company has a
comprehensive energy management policy to reduce energy consumption and promote
green technologies.
 Waste Management: ITC implements robust waste management procedures across
all its operations. The company focuses on reducing waste generation, promoting
recycling, and ensuring zero waste to landfill.

4. Health and Safety

ITC is committed to maintaining a safe and healthy workplace for all its employees,
contractors, and visitors. The company follows rigorous health and safety standards and
regularly reviews its procedures to ensure compliance with national and international
regulations.

 Safety Protocols: ITC’s safety protocols cover a wide range of operational activities,
including factory operations, hotel management, and retail. The company conducts
regular safety audits and drills to ensure readiness in case of emergencies.
 Employee Health: ITC promotes the health and wellness of its employees by
providing medical benefits, regular health checkups, and wellness programs. The
company also encourages healthy lifestyles through wellness initiatives and fitness
programs.

5. Financial Integrity and Risk Management

ITC is committed to maintaining the highest standards of financial integrity and has robust
policies and procedures in place to safeguard against financial risks.
Page 12 of 47
  Financial Reporting: ITC follows strict accounting principles and ensures that its
financial statements are accurate, complete, and compliant with international
accounting standards.
 Risk Management Framework: ITC has a comprehensive risk management policy to
identify, assess, and mitigate various risks associated with its operations. This includes
risks related to market fluctuations, regulatory changes, and supply chain disruptions.

6. Product and Quality Management

ITC places a strong emphasis on quality in every product it manufactures and markets. Its
quality management policies are designed to ensure that all products meet the highest
industry standards and customer expectations.

 Product Safety and Quality Control: ITC adheres to strict quality control measures
at every stage of product development, from sourcing raw materials to manufacturing
and distribution. The company ensures compliance with food safety standards and
environmental regulations.
 Research and Development: ITC invests significantly in research and development
to innovate and improve its products. The company’s R&D efforts focus on creating
sustainable products that meet consumer needs and preferences.

7. Anti-Corruption and Compliance

ITC has a zero-tolerance policy toward corruption and unethical business practices. The
company is committed to conducting its business operations in full compliance with local,
national, and international laws.

 Anti-Corruption Policy: ITC strictly prohibits bribery, corruption, and unethical

practices in its dealings with customers, suppliers, and government agencies.
Employees and partners are expected to report any suspicious activities or breaches of
the policy.
 Compliance Framework: ITC ensures compliance with all legal and regulatory
requirements, including labor laws, environmental regulations, and industry standards.
The company regularly conducts compliance audits and training for employees.

8. Customer Satisfaction and Engagement

ITC places a strong emphasis on customer satisfaction and engagement, ensuring that
products and services meet or exceed customer expectations.

 Customer Feedback: ITC encourages customers to provide feedback on products and

services. The company actively listens to customer concerns and takes prompt action
to resolve issues.
 Customer Service: ITC provides excellent customer service across its product
categories, including FMCG, hospitality, and paper products. The company’s
customer service teams are trained to handle inquiries, complaints, and feedback
efficiently.
Page 13 of 47
9. Corporate Social Responsibility (CSR)

ITC’s CSR policy is aligned with its core value of contributing to society’s well-being and
fostering sustainable development. The company is committed to supporting education,
healthcare, and rural development.

 Community Development: ITC focuses on improving the quality of life in rural

communities by supporting initiatives related to education, sanitation, and skill
development.
 Sustainable Livelihoods: ITC promotes programs that provide sustainable livelihoods
to disadvantaged communities, including women and farmers. These programs aim to
create long-term economic opportunities.

Page 14 of 47
Competitors of ITC Limited
ITC Limited, a diversified conglomerate with a strong presence in sectors like FMCG,
paperboards, packaging, hotels, and agribusiness, faces competition from several established
and emerging companies in various industries. ITC operates in highly competitive markets
where factors such as brand recognition, product innovation, quality, and distribution
networks play a crucial role in gaining market share. Below is an overview of ITC’s
competitors across different business segments.

1. FMCG Sector

In the fast-moving consumer goods (FMCG) sector, ITC competes with some of the biggest
names in the industry, both nationally and globally. Key competitors in the FMCG space
include:

a) Hindustan Unilever Limited (HUL)

HUL is one of the largest FMCG companies in India, with a diverse portfolio of products
spanning food, beverages, personal care, and home care. HUL’s flagship brands such as
Dove, Lipton, Surf Excel, and Knorr pose significant competition to ITC’s brands like
Aashirvaad, Sunfeast, and Fiama. HUL’s extensive distribution network and strong
consumer brand loyalty make it a formidable player in the FMCG sector.

b) Nestlé India

Nestlé India, part of the global Nestlé Group, competes with ITC in categories like food and
beverages. Brands such as Maggi, Nescafé, and KitKat are strong competitors to ITC's food
brands, especially in the instant noodles,Page
snacks,
15 of and
47 beverages segments. Nestlé’s reputation
for quality and innovation, as well as its broad product portfolio, makes it a significant
competitor to ITC in the food segment.

c) Procter & Gamble (P&G)

P&G, a global leader in personal care and household products, competes with ITC in
categories like personal care, health, and hygiene. P&G’s brands such as Ariel, Tide,
Pampers, and Gillette compete directly with ITC’s brands like Vivel, Fiama, and Savlon.
P&G’s innovation, marketing prowess, and global presence are key strengths that pose a
challenge to ITC in the consumer goods space.

d) Dabur India

Dabur is another significant competitor in the FMCG sector, particularly in the health,
personal care, and food products segments. Dabur’s products, including Dabur Amla, Dabur
Honey, and its range of Ayurvedic medicines, compete with ITC’s wellness and food
offerings, especially in health-conscious consumer categories. Dabur’s strong brand equity in
the natural and Ayurvedic space challenges ITC’s efforts in this segment.

2. Tobacco and Cigarette Industry

ITC’s core business initially stemmed from the tobacco industry, and the company continues
to be a dominant player in this sector. However, it faces competition from several other
tobacco manufacturers.

Page 16 of 47
a) Godfrey Phillips India

Godfrey Phillips, a subsidiary of the Philip Morris International, is a key competitor in the
tobacco industry in India. Known for its popular brands such as Four Square and Red &
White, Godfrey Phillips competes with ITC’s Gold Flake and Navy Cut brands in the
premium and mass-market segments of the cigarette market. Godfrey Phillips' established
presence in the Indian market and strong brand recognition make it a key rival.

b) VST Industries

VST Industries is another major player in the Indian tobacco industry. Known for its brands
like Navy Cut and Charminar, VST competes with ITC in the mid-range and premium
cigarette segments. Despite being smaller in scale compared to ITC, VST Industries holds a
significant share in the Indian market and presents stiff competition in terms of pricing and
brand loyalty.

c) Jai Bharat Gum & Chemicals Ltd

Jai Bharat, a prominent player in the Indian cigarette manufacturing industry, produces
several popular brands in the lower-price category, making it a competitor to ITC’s economy
brands. Jai Bharat is known for its ability to compete with established players in the low-cost
cigarette segment and has a loyal customer base in rural and semi-urban markets.

3. Agribusiness and Food

ITC also operates in the agribusiness and food sectors, which involves significant
competition, particularly in the packaged food and agricultural products markets.
Page 17 of 47
a) Cargill India

Cargill India is a major competitor in the food and agribusiness sector, especially in edible
oils, grains, and other food products. Cargill’s wide product portfolio and strong presence in
the Indian market make it a strong competitor to ITC’s food products like Aashirvaad and
Sunfeast. Its expertise in global sourcing, production, and distribution provides it with a
competitive edge in this space.

b) Britannia Industries

Britannia is a leading player in the Indian bakery and food products sector and competes
directly with ITC’s Sunfeast brand. With a focus on biscuits, cakes, and dairy products,
Britannia competes with ITC’s offerings in the snacking and baked goods segments.
Britannia’s strong brand loyalty and established distribution network make it a formidable
competitor in the food industry.

c) Amul (GCMMF)

Amul, owned by the Gujarat Cooperative Milk Marketing Federation, is one of the largest
dairy cooperatives in India. With its wide range of dairy products, Amul competes with ITC
in the dairy and packaged food categories. ITC’s Aashirvaad and other food offerings face
competition from Amul’s milk, butter, cheese, and other dairy products, as Amul’s brand is
synonymous with quality and affordability.

4. Paperboards and Packaging

In the paperboards and packaging segment, ITC competes with several large companies that
provide sustainable and high-quality paper-based solutions.

Page 18 of 47
a) Ballarpur Industries

Ballarpur Industries (BILT), one of India’s leading paper manufacturers, competes with ITC
in the paperboard and packaging sector. BILT manufactures a wide range of paper products,
including coated and uncoated boards, which directly compete with ITC’s paperboard
products. BILT’s strong market presence and focus on innovation in the paper industry make
it a major player in this segment.

b) JK Paper

JK Paper, another key competitor in the paper industry, produces a variety of paper products
used in packaging and printing. ITC’s Packaging & Printing business faces competition from
JK Paper in areas such as consumer goods packaging and industrial applications. JK Paper’s
focus on sustainability and diverse product offerings is a challenge to ITC’s market share in
this sector.

5. Hospitality and Hotels

ITC Hotels, the company’s luxury hospitality business, competes with several premium hotel
chains in India and internationally.

a) Taj Hotels (Indian Hotels Company Limited)

Taj Hotels, part of the Indian Hotels Company Limited (IHCL), is one of the leading luxury
hotel chains in India. Taj’s portfolio of luxury hotels, resorts, and heritage properties
competes directly with ITC Hotels in the high-end hospitality space. Both brands focus on
delivering premium guest experiences, with Taj Hotels having a strong brand presence in
India and abroad.

b) Oberoi Hotels & Resorts

Oberoi Hotels & Resorts, known for its luxury properties, competes with ITC Hotels in the
premium and luxury segments of the hospitality industry. Oberoi’s focus on world-class
service, luxurious accommodations, and hospitality excellence makes it a strong competitor
to ITC’s hotels, particularly in the five-star and luxury resort categories.

c) Marriott International

Marriott International operates several well-known brands like Ritz-Carlton, Sheraton, and
Courtyard, making it a competitor to ITC Hotels in both the luxury and mid-range hotel
markets. Marriott’s vast global presence and diverse range of hotel offerings give it a
significant competitive advantage in the Indian market.

6. Packaging Solutions and Materials

ITC’s packaging division competes with several large players who specialize in providing
sustainable and innovative packaging solutions.
Page 19 of 47
a) UFlex Limited

UFlex Limited, one of the largest manufacturers of flexible packaging in India, competes
with ITC in providing packaging solutions to FMCG and other sectors. UFlex’s
technological innovation in packaging materials and its global reach make it a significant
player in this segment.

b) Amcor Limited

Amcor Limited is a global packaging company that competes with ITC in providing
packaging solutions across various sectors, including food, healthcare, and consumer goods.
With a focus on sustainability and advanced packaging technologies, Amcor poses strong
competition to ITC’s packaging division.

SWOT Analysis of ITC Limited

ITC Limited, one of India's most diversified conglomerates, has a significant presence in
multiple sectors such as FMCG, tobacco, agribusiness, paperboards, packaging, and
hospitality. Its strong portfolio of brands, sustainability initiatives, and innovative business
practices have enabled the company to maintain a leading position in the Indian market.
Below is a detailed SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of
ITC Limited:

Strengths

Diverse Business Portfolio

ITC’s presence in a wide array of industries gives it a significant competitive advantage. The
company operates across multiple sectors, including FMCG (Aashirvaad, Sunfeast), tobacco
(Gold Flake, Navy Cut), paperboards (ITC Paperboards), packaging, hospitality (ITC
Hotels), and agribusiness (ITC Agribusiness). This diversification helps ITC reduce
dependency on any single market or sector, providing stability even in times of economic
volatility.

Strong Brand Equity

ITC is home to some of India's most trusted and popular brands. From the food and FMCG
segment (e.g., Aashirvaad, Sunfeast) to the hospitality and tobacco sectors, the company has
successfully built strong consumer recognition and loyalty. The focus on quality, innovation,
and sustainability has further cemented the company’s image in the minds of consumers.

Robust Distribution Network

ITC has an extensive distribution network that spans rural and urban markets across India.
The company's ability to effectively penetrate remote and rural areas allows it to reach
Page 20
millions of consumers, giving it a significant of 47over competitors in the FMCG and
edge
agribusiness sectors. This network is critical to its success in promoting products like
Aashirvaad flour, Sunfeast biscuits, and other household products.

Sustainability Leadership
ITC is a leader in sustainability, with its flagship initiatives such as "The ITC Green Centre"
and a commitment to achieving carbon neutrality across its operations. The company’s focus
on sustainability is reflected in its efforts to use renewable energy, manage water resources
effectively, and reduce waste. ITC has also pioneered sustainable agriculture initiatives in its
agribusiness operations.

Innovative R&D and Product Development

ITC invests heavily in research and development, which allows the company to continuously
innovate and bring new products to market. ITC’s ability to adapt to changing consumer
preferences is reflected in its evolving product offerings, such as healthier food products and
eco-friendly packaging solutions. The company’s commitment to high-quality, consumer-
centric innovation is a significant strength.

Weaknesses

Dependency on the Tobacco Segment

Despite its diversification, ITC continues to be significantly dependent on its tobacco
business, which contributes a large portion of its revenue. The tobacco sector, however, faces
growing regulatory pressures, health concerns, and declining consumption in certain
markets, making this dependency a potential risk for ITC. The company’s strategy to
diversify is positive but it must continue to reduce its reliance on tobacco over time.

Vulnerability to Regulatory Changes

ITC operates in industries that are subject to strict regulations, particularly the tobacco and
food sectors. Regulatory changes, such as increasing taxes on tobacco products, restrictions
on advertising, and stringent food safety norms, can negatively affect the company’s
performance. ITC must continue to manage these regulatory challenges effectively to avoid
disruptions in its business operations.

Brand Overlap and Market Saturation in FMCG

In the FMCG sector, ITC faces the challenge of managing multiple brands that sometimes
overlap in terms of product categories. For example, ITC’s brands like Sunfeast and
Aashirvaad are both prominent in the food market, and this could lead to market
cannibalization or confusion. Additionally, some FMCG categories have become highly
saturated, with increasing competition making it difficult for ITC to maintain its market
share.

High Operating Costs

Page 21 of 47 packaging, and logistics, come with high
ITC’s diverse operations, including manufacturing,
operating costs. As a result, the company may face pressure on margins, especially in
segments like tobacco, where price sensitivity is a concern. Rising raw material costs and
labor expenses also impact the company's overall profitability.

Opportunities

Expansion in Global Markets

ITC has strong potential to expand its reach in international markets, particularly in regions
where its products are underrepresented. Expanding its FMCG, food, and agribusiness
sectors in international markets presents a significant growth opportunity. The global rise in
demand for Indian brands, as well as increasing consumer interest in healthier and
sustainable products, positions ITC favorably to capitalize on international trade.

Growth in Health-Conscious Consumer Segments

With increasing health awareness, consumers are shifting toward healthier and more
sustainable products. ITC has the opportunity to capitalize on this shift through its
Aashirvaad (whole wheat flour), Sunfeast (healthy biscuits), and other health-conscious
products. Further development of products that cater to organic, gluten-free, and plant-based
diets could boost ITC’s position in the health-focused market.

Digital Transformation and E-Commerce

The growth of digital platforms and e-commerce offers ITC new avenues to reach
consumers, particularly millennials and Gen Z, who are tech-savvy and prefer online
shopping. ITC has the opportunity to invest in digital marketing, direct-to-consumer e-
commerce platforms, and online retail partnerships to increase its digital footprint and reach
a broader audience.

Sustainability and Green Products

As consumers become more environmentally conscious, there is an increasing demand for
sustainable and eco-friendly products. ITC has already made strides in this direction with
initiatives such as sustainable packaging, waste management, and environmentally friendly
production processes. The company can further capitalize on this trend by expanding its
range of green products and promoting its sustainability initiatives.

Rural Market Penetration

ITC has significant opportunities in rural markets where demand for FMCG products is
growing rapidly. With increasing rural incomes and evolving consumer preferences, ITC can
expand its presence in rural areas with targeted marketing campaigns and affordable
products. Strengthening its distribution network in rural markets will be key to tapping into
this opportunity.

Page 22 of 47
Threats

Intense Competition
ITC faces intense competition across all its business segments. In FMCG, it competes with
giants such as Hindustan Unilever, Nestlé, and Britannia. In tobacco, companies like
Godfrey Phillips and VST Industries challenge ITC’s market share. In the hospitality
industry, it competes with Taj Hotels, Oberoi Hotels, and Marriott. The intense competition
across these sectors puts pressure on ITC to constantly innovate and maintain its market
share.

Government Regulations and Taxation

ITC is vulnerable to changes in government policies, especially in the tobacco industry,
where increased taxes, advertising bans, and other regulatory constraints can impact its
business. The Indian government’s push for a tobacco-free nation, alongside rising taxes on
cigarettes and tobacco products, could negatively affect ITC’s tobacco revenues.

Economic Uncertainty and Slow Growth

ITC’s performance is closely tied to the overall economic health of India and global markets.
Economic slowdowns, rising inflation, and reduced consumer spending can lead to lower
demand for ITC’s products. Any economic downturn or recession could lead to reduced
consumer disposable income and adversely affect ITC’s sales across multiple sectors.

Raw Material Price Fluctuations

ITC’s FMCG and agribusiness operations are highly dependent on raw materials such as
wheat, rice, tea, and packaging materials. Fluctuations in the prices of these commodities due
to weather conditions, supply chain disruptions, or changes in global demand can affect
ITC’s profitability. Price volatility in these raw materials could also impact the company’s
cost structure and margins.

Environmental Risks
As a company with significant exposure to natural resources, ITC faces environmental risks
such as climate change, water scarcity, and pollution. Extreme weather conditions can affect
raw material production, especially in agribusiness and food products. ITC needs to
strengthen its environmental resilience to mitigate these risks and ensure sustainable growth.

Page 23 of 47
Company products and services
ITC Limited is one of India's leading conglomerates, with a diversified portfolio of products
and services that span various industries, including FMCG, tobacco, agribusiness, hotels,
paperboards, and packaging. Below is a detailed list of the key products and services offered
by ITC Limited:

1. FMCG (Fast-Moving Consumer Goods)

ITC’s FMCG business is a major contributor to its revenue and covers a wide range of
products across categories such as food, personal care, stationery, and lifestyle products.

Food & Beverages

ITC is one of the largest players in the Indian food and beverage market. Its product
offerings include:

Aashirvaad (Flour, Spices, Ready-to-Eat meals, etc.)

Sunfeast (Biscuits, Cakes, Instant Noodles, Pasta, etc.)

Bingo! (Snacks and Chips)

Yippee! (Instant Noodles)

Bovonto (Fruit Drink)

Mint-O (Mints)

Fiama (Shampoos, Soaps, Shower Gels, and other Personal Care Products)

Vivel (Soaps, Shampoos, and Personal Care Products)

Aashirvaad Svasti (Dairy Products, such as Ghee)

Sunsilk (Hair Care Range in partnership with Unilever)

Personal Care & Hygiene

Page 24 of 47
ITC offers a range of personal care products under various brand names, including:
Fiama (Shampoos, Body Wash, Soaps)

Vivel (Soaps, Body Lotions, Shampoos)

Savlon (Hand Sanitizers, Antiseptic Cream, Disinfectant Liquids)

Stationery & Lifestyle Products

ITC is a key player in the stationery market under the brand Paperkraft and also provides
various lifestyle products through brands like:

Classmate (Notebooks, Diaries, Writing Pads, etc.)

Paperkraft (Pens, Pencils, Notebooks)

Health & Wellness Products

ITC has increasingly focused on health and wellness products, such as:

Aashirvaad Atta with Multigrains

Aashirvaad Nature's Super Foods

Sunfeast Mom’s Magic (Health-focused Biscuits)

2. Tobacco Products

ITC is one of India’s largest manufacturers of tobacco products, and it is a market leader in
cigarettes. Its tobacco product portfolio includes:

Gold Flake (Cigarettes)

Navy Cut (Cigarettes)

Scissors (Cigarettes)

Wills (Cigarettes)

Red & White (Cigarettes)

Classic (Cigarettes)

ITC also has a substantial presence in the premium tobacco segment with products designed
for both Indian and international markets.

3. Paperboards and Packaging

ITC has a dominant presence in the paperboard and packaging sector, offering sustainable
solutions across industries. The company’s products in this category include:

ITC Paperboards (Coated and Uncoated Paperboard)

Packaging Solutions (Flexible Packaging,

PagePrinted
25 of 47 Paper, Cartons, and Rigid Packaging)
B2B Packaging Solutions for food, beverage, and personal care industries

4. Agribusiness

ITC’s agribusiness operations cater to the procurement, processing, and marketing of

agricultural products. Some of its key products and services include:

Aashirvaad Atta (Flour) – A leading product in ITC’s agribusiness portfolio.

ITC Agribusiness focuses on the cultivation and processing of raw materials, such as:

Soya

Wheat

Tea

Spices

Coffee

The company also provides direct sourcing from farmers, helping improve agricultural
practices and their livelihoods.

5. Hotels and Hospitality

ITC operates a large portfolio of luxury hotels under the ITC Hotels brand, providing world-
class hospitality services. The company’s hotel brands include:

ITC Hotels (Luxury Hotels)

Welcomhotel (Mid-Scale Hotels)

Mementos (Lifestyle Hotels)

These hotels provide a range of services, including accommodations, fine dining, wellness,
and event management.

6. Information Technology

ITC has also invested in the information technology sector, offering services to businesses.
ITC’s IT services are primarily offered through its subsidiary, ITC Infotech, and include:

Software Development and IT Consulting Services

Business Process Outsourcing (BPO)

Application Development

Cloud-based Solutions and Analytics

Page 26 of 47
Digital Transformation Solutions
7. Real Estate Development

ITC has ventured into real estate development, focusing on commercial, residential, and
mixed-use developments. This business includes:

ITC Gardenia (Office spaces, mixed-use properties)

ITC Green Centres (Commercial Real Estate, showcasing sustainability)

8. Financial Services

ITC offers a range of financial services through its subsidiary ITC Limited - Financial
Services. This includes investments in:

Mutual Funds

Wealth Management Services

Corporate Treasury Services

9. Others

ITC also offers several other products and services that complement its business activities,
including:

Luxury Goods (ITC offers exclusive products such as custom-designed apparel and
accessories through its luxury division)

Corporate Gifting Solutions (Customized corporate gifts from its various brands)

Page 27 of 47
Literature Review
Overview of Stockist Engagement Strategies in the FMCG Sector

Stockists play a crucial role in the supply chain of the Fast-Moving Consumer Goods
(FMCG) sector, acting as intermediaries between manufacturers and retailers. The
effectiveness of stockist engagement strategies can significantly impact a company’s
distribution efficiency, product availability, and overall sales performance.

1. Traditional Stockist Engagement Strategies Traditionally, FMCG companies have

relied on regular meetings, incentives, and discounts to engage with stockists.
According to a study by Sharma & Chatterjee (2016), many FMCG companies also
focus on offering flexible credit terms and promotional schemes to ensure that
stockists are motivated to push products in the market. These strategies are designed to
create a win-win situation, where both the company and stockists benefit from
increased sales.
2. Technology-Driven Engagement As the FMCG sector has become increasingly
digitized, companies are using advanced technology to streamline their stockist
management strategies. Digital platforms now allow FMCG companies to monitor
real-time inventory levels, order patterns, and even track payment statuses. This
minimizes the chances of stockouts, reduces lead time, and improves the overall
efficiency of stockist relationships (Gupta & Kakkar, 2018). Stockist engagement has
shifted from being reactive to proactive, leveraging data to anticipate demand patterns
and optimize supply chains.
3. Training and Development Programs An effective stockist engagement strategy
includes regular training and development programs to enhance the knowledge and
skills of stockists. This ensures they are well-versed in the latest products, industry
trends, and sales strategies, which ultimately boosts the performance of the stockist.
Companies like HUL and P&G have been using these training programs to build
stronger relationships with their stockists, as noted in research by Kapoor (2019).

Importance of Digital Tools like EzeePay for Streamlined Communication

In the fast-paced FMCG sector, communication with stockists, retailers, and distributors is
critical for efficient business operations. Digital tools have revolutionized the way companies
communicate with their supply chain partners, offering benefits like real-time updates, better
transparency, and quicker decision-making.

1. Enhanced Communication and Real-Time Data Access Digital tools such as

EzeePay have transformed the way FMCG companies communicate with their
stockists. EzeePay, for example, is a platform that facilitates seamless communication
and transaction management between manufacturers and stockists. As highlighted by
Patel et al. (2020), such platforms enable stockists to place orders, track deliveries, and
receive real-time updates on product availability, all in a single digital space. This
reduces delays and enhances the accuracy of order fulfillment, which is vital in FMCG
Page 28 of 47
where demand fluctuates frequently.
2. Efficiency in Payment and Invoice Management One of the key features of digital
tools like EzeePay is the integration of payment gateways and invoice management
systems. These tools streamline the payment process, ensuring faster settlements
between FMCG companies and stockists. As a result, cash flow management becomes
more efficient, reducing the dependency on traditional paper-based invoices and
enhancing transparency in financial transactions (Singh & Mehta, 2018).

3. Data Analytics for Stockist Performance Digital tools provide valuable data that
helps companies assess the performance of stockists. EzeePay, along with other
similar tools, tracks metrics such as order frequency, payment history, and product
demand patterns. This data is crucial for identifying top-performing stockists and
tailoring specific engagement strategies for each one. By leveraging data analytics,
companies can prioritize their efforts on the most productive stockists, thus increasing
overall operational efficiency (Ranjan & Bhardwaj, 2019).

Page 29 of 47
Comparative Analysis of Industry Best Practices

The FMCG sector is highly competitive, and companies are constantly looking for ways to
enhance their engagement strategies to improve stockist relationships and supply chain
efficiency. Below is a comparative analysis of some of the best practices adopted by leading
FMCG companies:

Procter & Gamble (P&G):

P&G has adopted a highly integrated approach to stockist engagement, focusing on a
combination of training, rewards, and digital tools. According to a report by Kapoor (2018),
P&G uses a system called "Salesforce Automation" to track orders, manage stock levels, and
assess stockist performance. Additionally, they focus on training stockists regularly through
a structured program that emphasizes customer engagement and product knowledge, helping
them better promote P&G’s products.

Hindustan Unilever (HUL):

HUL has invested heavily in digital tools and platforms for stockist engagement. One of their
key initiatives is the “Unilever Connect” platform, which provides real-time data on stock
levels, order processing, and even market trends. According to research by Sharma (2020),
HUL’s use of digital communication tools, along with their promotional incentives for
stockists, has greatly enhanced their ability to manage stockist relationships and optimize
distribution channels.

Nestlé:
Nestlé follows a customer-centric approach with stockist engagement. In addition to regular
meetings and promotions, Nestlé’s engagement strategy involves creating a network of "field
sales representatives" who work closely with stockists to provide personalized support.
According to the study by Agarwal & Singh (2021), Nestlé has focused on maintaining an
ongoing dialogue with stockists, using both traditional methods and digital communication
tools like mobile apps for stock management, inventory tracking, and order placement.

ITC Limited:
ITC has implemented a hybrid engagement strategy that combines traditional stockist
programs with advanced digital tools. The company uses platforms like EzeePay for
streamlined communication and payment processing, helping to maintain transparency and
efficiency in the supply chain. Additionally, ITC has emphasized sustainability and corporate
responsibility in its stockist programs, building long-term relationships based on shared
values
.

Page 30 of 47
Objectives of the Study
The study aims to explore several critical aspects of stockist engagement strategies within
the FMCG sector, focusing specifically on enhancing communication, evaluating the role of
digital tools, and benchmarking the practices of ITC Limited against its key competitors.
This comprehensive examination will allow for an understanding of current trends,
challenges, and opportunities in stockist engagement and highlight how digital tools can help
streamline processes, improve communication, and increase overall effectiveness. Below are
the primary objectives of the study.

1. To Improve the Efficacy of Direct Communication with FMCG Stockists

Effective communication between FMCG companies and their stockists is paramount to

ensuring smooth operations, timely delivery of products, and successful marketing of goods
at the retail level. This objective focuses on exploring ways to enhance direct communication
channels with stockists, making them more effective and efficient. In many FMCG
companies, communication with stockists is primarily face-to-face, supported by phone calls,
emails, and occasional site visits. However, these methods may not always provide real-time
feedback, and inefficiencies can arise when coordinating deliveries or responding to changes
in demand.

This study seeks to examine current communication strategies, identifying potential gaps and
proposing improvements. For instance, it will explore the potential of streamlining
communication through modern digital platforms that enable real-time updates on stock
availability, order status, and delivery timelines. Moreover, the study will look into the
importance of direct engagement in understanding stockists' challenges and needs. It will
also explore how effective communication can build trust and stronger relationships, leading
to higher loyalty, greater sales, and improved brand performance in the market.

This objective is critical because in the highly competitive FMCG landscape, speed and
accuracy in communication can be the difference between achieving growth or losing market
share. By improving communication methods, companies can better respond to stockist
concerns, adjust to fluctuations in demand, and ultimately increase the efficiency of their
supply chains.

Page 31 of 47
2. To Evaluate the Role of Digital Tools in Engagement

The second objective focuses on assessing the role of digital tools in enhancing stockist
engagement. As the FMCG industry continues to evolve, traditional methods of stockist
engagement (such as manual order placements and physical paperwork) are becoming less
efficient and more prone to errors. Digital tools, such as platforms for order management,
payment processing, and performance tracking, offer an opportunity to overcome these
inefficiencies.

A central component of this study will be to evaluate the impact of digital solutions like
EzeePay, which can facilitate seamless communication between FMCG companies and
stockists. By utilizing such tools, companies can automate routine tasks like order processing
and invoicing, thereby reducing the risk of human error, improving speed, and providing
transparency in financial transactions. This will enhance operational efficiency and allow
FMCG companies to track real-time data about stock levels, payment statuses, and delivery
schedules.

The study will also explore how digital tools can be used to gather insights about stockist
performance. For example, data analytics can be used to assess sales patterns, payment
behavior, and product demand, which can then inform decision-making, optimize stockist
allocations, and tailor specific engagement strategies. The ability to track stockists'
performance enables FMCG companies to incentivize high-performing stockists, providing
them with the necessary support and rewards to boost sales. Additionally, these tools can
facilitate training programs, ensure accurate deliveries, and provide better after-sales service,
thus improving overall stockist satisfaction.

Another important aspect is the role of mobile applications and cloud-based platforms in
providing instant access to product information and promotional materials. This gives
stockists real-time access to updated product catalogs, promotions, and marketing strategies,
which ultimately help them sell more effectively. In light of these considerations, the study
will critically evaluate the digital tools available to FMCG companies and explore how these
tools contribute to better stockist engagement and satisfaction.

3. To Benchmark ITC’s Practices Against Competitors

The third objective is to benchmark ITC Limited’s stockist engagement practices against its
competitors in the FMCG industry. ITC is known for its diverse portfolio, spanning food and
beverages, personal care, tobacco, and other segments. As part of this objective, the study
will conduct a comparative analysis of ITC’s strategies and practices in stockist engagement
against the approaches adopted by leading FMCG companies like Hindustan Unilever
(HUL), Procter & Gamble (P&G), and Nestlé.

This benchmarking will involve analyzing key components of stockist management,

including communication strategies, training programs, payment structures, and use of
digital tools. The study will assess how ITC’s practices compare to those of its competitors
in terms of efficiency, innovation, and Page
overall effectiveness. For example, while ITC has
32 of 47
implemented platforms like EzeePay for improving stockist communication and payment
processing, competitors like HUL and P&G have also adopted similar digital tools, but their
implementation and usage might differ in terms of scale, integration, and impact on stockist
performance.

One critical area of comparison will be the use of data analytics and technology in engaging
with stockists. While ITC uses digital tools for real-time communication and inventory
management, it will be important to analyze how competitors leverage these technologies to
enhance the performance of their stockists. Additionally, this study will examine the role of
stockist incentives and loyalty programs, which vary between companies. ITC, for example,
has implemented customized training sessions and rewards for high-performing stockists,
while other companies like Nestlé might focus on co-marketing strategies and collaborative
growth with their stockists.

By benchmarking ITC against competitors, the study will identify the strengths and
weaknesses of the company’s stockist engagement strategy. This will also help highlight
areas where ITC can improve its practices or adopt successful strategies from its competitors
to stay ahead in the market. For instance, the study may suggest improvements in digital
integration, stockist performance management, or customer relationship practices based on
the findings.

Page 33 of 47
Research Methodology
Research Design

The research study adopted a mixed-methods approach, combining both quantitative and
qualitative data collection techniques to provide a comprehensive understanding of stockist
engagement strategies in the FMCG sector. The mixed-methods design allowed the
researcher to capture both numerical data, which could be analyzed statistically, as well as
deeper insights into stockists' experiences, opinions, and perceptions. The integration of
these two methods enhances the reliability and validity of the findings, providing a more
holistic view of the research topic.

Quantitative surveys were employed to gather numerical data, focusing on stockists'

satisfaction, usage patterns of digital tools, and the effectiveness of existing communication
strategies. On the other hand, qualitative interviews were conducted to delve deeper into
stockists' views and experiences, allowing the researcher to explore themes such as the
challenges faced by stockists in their relationship with FMCG companies, the perceived
benefits and limitations of digital platforms like EzeePay, and the broader context of stockist
engagement strategies. By combining both quantitative and qualitative methods, the study
provided a nuanced analysis of how digital tools impact stockist engagement and overall
supply chain performance.

5.2 Data Collection Methods

The data collection for this study involved two primary methods: surveys and the analysis of
EzeePay app usage metrics.

Surveys of Stockists

Surveys were the primary tool for gathering quantitative data. The survey was designed to
capture detailed information from stockists about their experiences, satisfaction, and
engagement with FMCG companies, particularly in relation to digital tools like EzeePay.
The survey included both closed-ended and open-ended questions to allow for both
structured responses and the opportunity to explore more nuanced perspectives. Closed-
ended questions provided measurable data on key metrics, such as satisfaction levels,
frequency of tool usage, and perceived effectiveness of communication. On the other hand,
open-ended questions provided stockists with a chance to elaborate on their experiences and
offer suggestions for improvement.

The surveys focused on various aspects of stockist engagement, such as the ease of
communication with FMCG companies, the speed of order fulfillment, the quality of
customer service, and the perceived advantages and challenges of using digital tools. In
particular, stockists were asked to rate their experiences with digital platforms, including
EzeePay, in terms of ease of use, reliability, and their impact on overall operational
efficiency. The surveys were distributed to stockists via email, online survey platforms, and
Page 34 of 47
in-person interactions, ensuring broad coverage across different regions.
This method allowed the researcher to collect a large volume of responses, providing a solid
foundation for statistical analysis. By analyzing the survey data, the study was able to
quantify stockists’ perceptions of digital tools and communication strategies, identify
patterns in their usage, and draw conclusions about how these factors influence stockist
performance and satisfaction.

Analysis of EzeePay App Usage Metrics

In addition to surveys, the study also involved the analysis of usage metrics from the
EzeePay app, which is a critical digital tool used by FMCG companies like ITC for
managing stockist communications, orders, and payments. Usage metrics from the app
provided valuable insights into how stockists interact with the platform on a daily basis and
the extent to which it influences their engagement with FMCG companies. Data was
collected from the backend of the app, capturing key metrics such as the frequency of login,
types of transactions performed, time spent on the platform, and the number of successful
transactions completed.

The analysis of this data helped the researcher identify trends in app usage and correlate
these trends with stockists' satisfaction levels. For example, higher frequency of app usage
could indicate that stockists find the platform useful and efficient, while low engagement
might suggest usability issues or a lack of perceived value. The data collected from the app
was also used to assess how the tool impacted stockist performance in terms of order
processing speed, payment collection, and communication efficiency.

By analyzing these usage metrics, the study was able to gain a deeper understanding of the
practical applications of digital tools like EzeePay and their role in improving stockist
engagement. This data complemented the survey responses by providing concrete evidence
of how digital tools are used in real-world settings, adding another layer of insight to the
overall research findings.

Page 35 of 47
5.3 Sampling Techniques

A stratified sampling method was employed to select the participants for the study,
specifically targeting 50 stockists in [Region]. Stratified sampling ensures that different
segments or categories of stockists within the region are adequately represented in the study.
This approach helps capture a diverse range of perspectives from stockists of different sizes,
product categories, and business models.

The stratification was based on several factors, including the size of the stockist's operation
(small, medium, large), the type of products they handle (food and beverages, personal care,
tobacco, etc.), and their level of experience with digital tools. By ensuring that various
subgroups were represented, the study was able to gather a comprehensive set of data that
reflects the experiences of a wide array of stockists in the region. The target sample size of
50 stockists was determined to be sufficient for both the quantitative analysis through
surveys and the qualitative insights derived from interviews.

The use of stratified sampling allowed for more precise comparisons between different types
of stockists and provided a better understanding of how stockist engagement strategies,
especially digital tools, vary across different segments of the stockist population. It also
ensured that the study could identify any significant differences in satisfaction levels,
communication effectiveness, or tool usage across various groups.

5.4 Data Analysis Tools

The collected data was analyzed using a combination of tools, including Excel for statistical
analysis and Tableau for data visualization.

Excel was primarily used for quantitative data analysis, particularly for processing survey
responses. The raw survey data was cleaned, organized, and analyzed using Excel’s various
built-in functions, such as pivot tables, regression analysis, and descriptive statistics. This
allowed the researcher to identify trends, correlations, and patterns in the data, such as the
relationship between stockist satisfaction and the frequency of digital tool usage, or the
impact of communication strategies on stockist performance.

Tableau, a powerful data visualization tool, was used to present the findings in a more
accessible and visually appealing format. Tableau enabled the researcher to create interactive
dashboards that displayed the data in graphical formats, such as bar charts, pie charts, and
heat maps. These visualizations helped to present complex data in a way that was easy to
interpret, allowing for clearer insights into the effectiveness of stockist engagement strategies
and digital tool usage.

Together, Excel and Tableau provided a comprehensive suite of tools for analyzing both
quantitative and qualitative data, ensuring that the study’s findings were robust, actionable,
and clearly communicated. By leveraging these tools, the researcher was able to draw
meaningful conclusions from the data, supporting the study’s objectives and offering
practical recommendations for FMCG companies
Page 36 of 47seeking to improve stockist engagement.
Analysis and Findings
The analysis of the data collected through surveys, interviews, and EzeePay app usage
metrics has revealed several key findings related to stockist engagement in the FMCG sector,
particularly in relation to communication strategies, digital tool adoption, and competitive
practices. These findings provide critical insights into areas where improvements can be
made in the stockist engagement process, which in turn could enhance the overall operational
efficiency of FMCG companies like ITC. The analysis focuses on three primary areas:
communication gaps in direct engagement, low adoption rates of the EzeePay app, and how
competitors’ communication models were more streamlined.

Communication Gaps Identified in Direct Engagement Methods

One of the primary findings from the survey and qualitative interviews was the identification
of significant communication gaps in the direct engagement methods currently employed by
FMCG companies with their stockists. While traditional communication channels such as
face-to-face meetings, phone calls, and emails are still prevalent, they often create barriers to
effective communication, leading to inefficiencies in the supply chain.

Several stockists reported that while they valued the personal interactions, these face-to-face
meetings were not frequent enough to address the day-to-day challenges they faced.
Furthermore, many stockists expressed frustration with the lack of timely responses to
queries and issues raised during phone calls or via email. These delays in communication
often resulted in stockouts, incorrect deliveries, and missed opportunities for promotion or
new product introductions. A major pain point highlighted by stockists was the lack of real-
time updates regarding order statuses, product availability, and promotional activities.

From the data collected, it became clear that communication was often reactive rather than
proactive, with companies responding to issues as they arose rather than anticipating
potential concerns. Additionally, many stockists mentioned that communication from FMCG
companies was often fragmented, with different departments (such as sales, logistics, and
finance) using separate channels, leading to confusion and inconsistency in information. This
fragmented approach hampered effective collaboration between stockists and FMCG
companies, resulting in missed opportunities for improving stock availability, optimizing
sales, and addressing logistical issues in a timely manner.

Page 37 of 47
Key Finding: The traditional direct communication methods, although valued for personal
interactions, were not sufficient to meet the real-time demands of stockists. There was a clear
need for a more integrated and streamlined communication system that would provide
stockists with timely and accurate information across various touchpoints.

Low Adoption Rates of the EzeePay App

A second critical finding of the study was the low adoption rate of the EzeePay app among
stockists. Although the app was designed to streamline the order placement, payment
processing, and communication process, survey results revealed that a significant portion of
stockists had not fully embraced its use. Only 40% of the stockists surveyed reported
frequent usage of the EzeePay app, with a substantial percentage citing challenges that
hindered their adoption.

One of the main barriers to adoption was the lack of familiarity with the digital tool. Many
stockists, particularly in rural or less technologically advanced regions, expressed difficulty
in navigating the app or understanding its features. Stockists who were not tech-savvy found
the platform cumbersome and preferred the traditional methods of placing orders over phone
calls or in-person visits. Additionally, some stockists reported connectivity issues,
particularly in areas with poor internet coverage, which made it difficult for them to access
the app and use it consistently.

Moreover, several stockists mentioned that they did not see enough value in the app to
justify its usage. For example, they felt that the app's features, such as real-time inventory
tracking and digital payments, did not add significant benefits compared to the traditional
methods they had been using for years. Some stockists even stated that the app's user
interface was not intuitive enough, and they found it difficult to access critical information or
place orders quickly. The lack of training and support in using the app also emerged as a
significant issue; many stockists felt they were not adequately guided on how to leverage the
app's full capabilities.

Key Finding: Despite being a digital tool designed to enhance communication and
operational efficiency, the EzeePay app faced low adoption rates, largely due to
technological barriers, user interface challenges, and inadequate support for stockists
unfamiliar with digital tools.

Competitors' Communication Models Were More Streamlined

A third critical insight gained from the study was the observation that competitors in the
FMCG sector had more streamlined communication models compared to ITC’s approach.
Page 38 of 47
Companies such as Hindustan Unilever (HUL) and Procter & Gamble (P&G) were found to
have adopted more sophisticated and integrated communication systems that blended both
digital and traditional communication methods, providing stockists with real-time updates
and seamless interaction.

HUL, for example, utilizes its proprietary platform “Unilever Connect,” which allows
stockists to place orders, access promotional materials, track deliveries, and view up-to-date
inventory levels. The system integrates various functions into one central platform, which
reduces the need for multiple points of contact. Furthermore, the platform is designed with
user-friendliness in mind, ensuring that stockists of all levels of tech proficiency can easily
navigate and use it. In addition, HUL’s communication model emphasizes proactive
engagement, with regular updates on stock availability, product promotions, and new
launches, ensuring that stockists are always informed and prepared to serve the market.

P&G similarly employs digital tools that facilitate real-time communication, such as
Salesforce automation platforms, to track stockist performance, manage inventory, and
provide immediate feedback on orders. These platforms also integrate financial management
functions, allowing for quicker and more transparent payment processing. Both HUL and
P&G also place a strong emphasis on training and support, ensuring that stockists are well-
equipped to use these digital platforms effectively.

In contrast, ITC's communication model, although incorporating digital tools like EzeePay,
was found to be less integrated and user-centric. The company's communication system was
described as fragmented, with stockists often relying on multiple channels for order
placement, payments, and communication. Additionally, while ITC did make efforts to
engage stockists through digital platforms, the lack of seamless integration across different
functions and insufficient training and support were major factors that hindered the app's
adoption.

Key Finding: Competitors like HUL and P&G were found to have more streamlined and
user-friendly communication models, leveraging integrated digital platforms that combined
multiple functions in a single interface, which facilitated better stockist engagement and
operational efficiency.

Page 39 of 47
Discussion and Interpretation
The findings of the study shed light on several important aspects of stockist engagement
within the FMCG sector, particularly in relation to communication strategies and the role of
incentives. These two areas emerged as critical to enhancing stockist participation,
improving operational efficiency, and driving growth. The discussion below interprets the
need for a multi-channel communication approach and the role of incentives in boosting
stockist participation, offering recommendations based on the insights derived from the
study.

The Need for a Multi-Channel Communication Approach

One of the primary issues identified in the study was the communication gap that exists in
the direct engagement methods used by FMCG companies like ITC. The reliance on
traditional communication channels such as face-to-face meetings, phone calls, and emails is
no longer sufficient in today’s fast-paced business environment. Stockists need more than
just periodic in-person visits or email exchanges; they require a communication approach
that is real-time, reliable, and accessible across multiple platforms.

The study reveals that stockists are increasingly looking for quick and efficient ways to
communicate with FMCG companies, particularly for issues like order status, inventory
availability, and payment processing. While traditional methods provide some degree of
personal interaction, they fail to meet the expectations of stockists who need immediate
updates and transparency in their operations. A multi-channel communication approach,
incorporating a blend of digital tools (such as apps, web portals, and social media platforms)
alongside traditional methods, would better serve the needs of stockists.

For example, digital platforms like EzeePay, which allow for real-time communication and
transaction processing, can significantly reduce delays and inefficiencies. However, for these
platforms to be effective, they must be integrated with other communication channels. By
utilizing mobile apps for order tracking, email for promotional updates, and phone or video
calls for more personal engagement, FMCG companies can create a robust and adaptable
communication ecosystem. This approach would not only improve the responsiveness of
FMCG companies to stockists but also foster stronger, more collaborative relationships.

In essence, adopting a multi-channel communication approach would ensure that stockists

are consistently informed and empowered to make quicker, more informed decisions.
Furthermore, it would help bridge the existing gaps in communication, ultimately
contributing to more efficient supply chain operations and higher stockist satisfaction.

Role of Incentives in Boosting Stockist Participation

The second key finding from the study points to the importance of incentives in boosting
Page
stockist participation and fostering greater 40 of 47
engagement with FMCG companies. Stockists are
key players in the FMCG distribution chain, and their motivation is often directly influenced
by the rewards and incentives they receive. The study revealed that stockists who felt that
their efforts were recognized and rewarded were more likely to engage proactively with
digital tools like EzeePay and other company initiatives.

Incentives can take many forms, from monetary rewards such as discounts, bonuses, and
commission structures, to non-monetary rewards like exclusive promotions, training
opportunities, and recognition. The research indicates that stockists are more likely to adopt
digital platforms and communicate effectively with FMCG companies when they are
provided with tangible benefits in return. For instance, stockists who achieve sales targets
may be rewarded with special discounts on products or additional support in the form of
marketing materials or co-branded promotional campaigns. These types of incentives
motivate stockists to push harder in terms of sales, improving their overall performance and
increasing product visibility in the market.

Moreover, incentives also play a critical role in encouraging stockists to participate in

training programs or digital platform adoption. In the case of EzeePay, providing stockists
with bonuses or rewards for consistently using the platform and engaging with the app would
not only increase adoption rates but also boost overall user engagement. These incentives
would make stockists feel that their time and effort spent learning and adapting to new
digital tools are valued.

In addition to direct financial rewards, recognition-based incentives can also have a profound
impact on stockist behavior. Stockists who feel that they are valued partners in the FMCG
company’s growth are more likely to go above and beyond in their efforts. Public
recognition, such as awarding top-performing stockists with titles or showcasing their
success stories in newsletters or at annual events, can reinforce positive behavior and foster
loyalty.

Thus, it is clear that a well-designed incentive program can significantly enhance stockist
engagement. By offering both monetary and non-monetary rewards, FMCG companies can
encourage stockists to embrace new technologies, improve their sales performance, and
ultimately create a more collaborative and mutually beneficial relationship.

Page 41 of 47
Recommendations
Enhancing Visibility: Implement innovative product displays and signage to increase the
prominence of ITC brands on stockist shelves.

Boosting Engagement: Develop comprehensive training programs and incentive schemes to

motivate and empower floor boys.

Leveraging Technology: Maximize the utilization of digital tools like the Unnati and
Ezeepay apps to streamline operations and improve compliance.

Other Recommendations:

 Implement targeted training for stockists on EzeePay.

 Develop a reward system linked to engagement metrics.

 Use competitor benchmarks to refine communication strategies.

Page 42 of 47
Conclusion
This project has provided valuable insights into how ITC Limited can enhance stockist
communication and improve engagement strategies in the FMCG sector. By focusing on
communication gaps, the adoption of digital tools, and understanding competitor models, the
study has laid a foundation for actionable improvements that can foster better relationships
between FMCG companies and their stockists. The conclusions drawn from the analysis
suggest that ITC can improve its stockist engagement by embracing a more integrated and
streamlined communication approach, leveraging the power of incentives, and fostering a
more user-friendly digital ecosystem. Below, key conclusions and future directions are
discussed.

Enhancing Stockist Communication with Multi-Channel Strategies

A significant finding from this study was the need for a multi-channel communication
approach to bridge the gaps in direct engagement methods. By incorporating a mix of digital
platforms and traditional communication channels, ITC can ensure real-time interaction with
stockists, reducing delays and improving transparency in the supply chain. A more integrated
communication strategy would address the limitations of the current system and ensure
stockists are always well-informed about order status, product availability, and promotional
opportunities. This integrated approach would enable ITC to stay ahead of competitors and
drive better collaboration with stockists across all regions.

Boosting Digital Tool Adoption

The study highlighted the low adoption rates of the EzeePay app among stockists, which
points to the need for ITC to improve the user experience and provide better support for
stockists using the platform. To encourage greater adoption, ITC could focus on simplifying
the app's interface, providing more training, and offering incentives tied to app usage. By
addressing the technological barriers and ensuring stockists understand the app’s benefits,
ITC can improve the efficiency of communication and streamline processes such as order
placements, inventory management, and payments.

The Role of Incentives in Improving Stockist Engagement

Incentives were found to play a critical role in boosting stockist participation and fostering
engagement. ITC can enhance its incentive programs by offering both financial and non-
financial rewards that encourage stockists to adopt digital tools, hit sales targets, and engage
more consistently with the company. Effective incentive schemes could include bonuses for
using the EzeePay app, discounts on high-volume purchases, and recognition of top-
performing stockists. By motivating stockists through rewards, ITC can ensure that its
Page
stockists are invested in the success of the 43 of 47 and aligned with its goals.
company
Learning from Competitors

The study found that competitors like HUL and P&G have more streamlined and integrated
communication models that enable better stockist engagement. ITC could benefit from
analyzing these best practices and adapting them to its own communication strategy. By
leveraging more sophisticated digital platforms and improving stockist support, ITC can
create a more seamless experience for its stockists, ensuring that both the stockist and the
FMCG company are aligned in their objectives.

Future Directions and National Scaling

The findings of this study provide a roadmap for improving stockist communication at a
regional level. However, to truly unlock the potential of these strategies, ITC should focus on
scaling these improvements nationwide. Future work could include conducting similar
studies across different regions to identify specific local challenges and adapting the
strategies to meet the needs of stockists in diverse geographical areas. Additionally,
implementing a nationwide training program and enhancing the digital infrastructure for
stockists would enable ITC to standardize its engagement practices, ensuring consistency in
communication and performance across all regions.

Page 44 of 47
Learning Experience
This project provided a deep understanding of FMCG dynamics, challenges in stockist
communication, and the importance of leveraging digital tools. Key challenges included data
collection in remote areas and aligning stockist schedules.

Page 45 of 47
References
[Include citations for reports, books, and articles referenced in the project.]

Page 46 of 47
Appendices
 Survey questionnaires.
 Data tables.
 Charts and graphs.

Page 47 of 47