A SUMMER INTERNSHIP PROJECT REPORT ON

(A study on Retailer perception and distribution functions of premium brand

products of ITC) IN (ITC)

SUBMITTED TO IAEER’S PUNE INSTITUTE OF BUSINESS MANAGEMENT FOR

PGDM

SUBHAM PRAMANIK

PGDM Batch 2023-2025

PRN: (DM23H51) / ROLL NO: (MO-116)

UNDER THE GUIDANCE OF

(Dr. Poorna Chandra Prasad)

IAEER’S PUNE INSTITUTE OF BUSINESS MANAGEMENT FOR PGDM

PIRANGUT, PUNE- 412115
 To whom so ever it may concern

This is to certify that the Project Report titled A study on Retailer perception and distribution functions
of premium brand products of ITC is an authentic work carried out by Mr. Subham Pramanik from
PGDM of IAEER’s Pune Institute of Business Management for PGDM, Pune - 412115 as a fulfilment
of PGDM Course. He/ She has worked under our guidance and satisfactorily completed his/ her project
work.

Place: Pune Date:

Signature of Internal Guide Signature of HOD

Signature of Director Signature of Controller Examinations

COMPANY CERTIFICATE
 DECLARATION BY THE STUDENT

I hereby certify that the work which is being presented in the present winter Internship Report entitled
“A study on Retailer perception and distribution functions of premium brand products of ITC”
is for fulfilment of the requirement for the award of Degree of Post Graduate Diploma in
Management, Pune Institute of Business Management, Pune, India is an authentic record of my
own work carried out under the supervision and guidance of Dr. Poorna Chandra Prasad of
Department of Marketing.

In keeping with the ethical practice in reporting scientific information, due acknowledgements have
been made wherever the findings of others have been cited.

(Student Name and sign)

 ACKNOWLEDGMENT
The internship opportunity with ITC, provided me a platform to work with highly qualified and experienced
individuals who opened up new avenues of learning and professional development for me. Therefore, I consider myself
as a very lucky individual as I was provided with an opportunity to be a part of it.

This internship would not have been the same without the enthusiasm and vigor provided by my Rahul Deb Mondal,
Territory Sales Incharge at ITC LTD whose behavior was outstanding. Hence, I would like to express my deepest
gratitude to him/her who heartily welcomed me for the internship and whose guidance and dedication encouraged me
throughout the winter internship program.

I express my deepest thanks to Dr. Poorna Chandra Prasad, Assistant Professor of Marketing at PIBM for taking
part in useful decision & giving necessary advices and guidance and arranged all facilities to make life easier all
throughout the internship program. Her/his valuable knowledge helped me gain a better grasp on Marketing
Operations which has helped me understand Marketing operations Department in a better way.

It is my radiant sentiment to place on record my best regard, deepest sense of gratitude to, for her/ his careful and
precious guidance which were extremely valuable for my study both theoretically and practically.

Sincerely,

Students Name: Subham Pramanik

Place: Pune
Date:
Project Synopsis: -
Project Title- A study on Retailer perception
and distribution functions of premium brand
products of ITC

Company Name- ITC LTD

Student Name- Subham Pramanik

Student Roll No- MO-116

Project Guide Name (External Mentor)-

Rahul Deb Mondal

Project Guide Designation (External

Mentor)- Territory Sales Incharge at ITC
LTD
Project Guide Name (Internal Mentor)-
Dr. Poorna Chandra Prasad

Project Guide Designation (Internal

Mentor)- Assistant Professor of
Marketing

Confidential Report (Yes/No)- Yes

Duration of project- 60 Days

Executive Summary
• Internship Project Report by Subham Pramanik, supervised by Rahul Deb Mondal, focuses on retailer
perception and distribution functions of ITC's premium brand products.
• Research Objectives: Assess retailer perception, analyze distribution functions, identify challenges, and
explore opportunities in retailing and distribution of ITC's premium brands.
• Methodology: Mixed-methods approach using quantitative surveys and qualitative interviews with retailers.
• Key Findings:
o ITC's premium products, like Classmate notebooks and pens, are perceived positively for quality and
trustworthiness.
o Challenges include price sensitivity, distribution complexities, and the demand for sustainable
products.
o Recommendations for ITC include enhancing consumer engagement, leveraging digital marketing,
expanding product range with eco-friendly options, and optimizing distribution networks.
• Internship Experience: Practical experience in sales and marketing, including distribution drives, in-store
displays, and promotional strategies.
• Contribution: Insights into the FMCG sector, actionable strategies for ITC's market presence, and
distribution efficiency.

Introduction
The retail industry significantly impacts the distribution and market positioning of premium brand products, making
retailer perception and effective distribution functions crucial for a company's success. This study focuses on ITC
Limited, a leading Indian conglomerate known for its diverse portfolio, including premium brand products in FMCG,
lifestyle, and personal care categories. Retailer perception, which encompasses how retailers view and evaluate ITC’s
premium offerings, is essential as it influences their willingness to stock, promote, and sell these products. Positive
retailer perception can enhance shelf placement, promotional efforts, and ultimately drive higher sales. Concurrently,
effective distribution functions ensure these products are available to consumers at the right time and place,
maintaining the brand’s premium image. This study aims to assess retailer perception, analyze distribution functions,
identify challenges, and explore opportunities in the retailing and distribution of ITC’s premium brands. By
employing a mixed-methods approach, combining quantitative surveys and qualitative interviews with retailers, the
research seeks to provide actionable insights and recommendations. These findings will not only contribute to
academic literature on retail and distribution management but also offer practical strategies for ITC to strengthen its
market presence and distribution efficiency in the competitive retail landscape.

Background of the study

The retail industry is vital to the distribution and market placement of premium brand products; hence retailer
perception is an important aspect in a company's success. ITC Limited, a prominent Indian conglomerate with a
diversified portfolio that includes Fast-Moving Consumer Goods (FMCG), leisure, and personal care categories,
recognises the value of good retailer perception in increasing sales and maintaining its premium brand image.

In this competitive context, merchants' perceptions have a substantial impact on their propensity to stock, promote,
and sell premium products. Effective distribution activities are also necessary to ensure that products are easily
accessible to consumers, hence maintaining the brand's premium position.

This study, done within ITC Limited, seeks to delve into retailer perceptions and distribution functions in order to
provide actionable insights and recommendations for boosting market visibility and distribution efficiency. By
analysing retailers' opinions and attitudes towards ITC's premium offers, the study hopes to identify critical elements
influencing stocking decisions and sales performance. It also reviews the efficiency of ITC's distribution strategies,
identifies obstacles in the distribution and supply chain processes, and determines the relevance of distribution
channels in expanding market reach.

Sector, company, product, service analysis

Sector: Fast Moving Consumer Goods (FMCG)
About the sector: -
FMCG stands for Fast-Moving Consumer Goods, and it represents a sector of the economy
that focuses on the production, distribution, and marketing of consumer goods that are
typically purchased frequently and consumed rapidly. These goods are also referred to as
consumer-packaged goods (CPG). FMCG products include a wide range of items such as
food and beverages, personal care products, household cleaning products, and over-the counter medicines.
Here are some key points about the FMCG sector:
Fast-Moving Nature: FMCG products have a quick turnover, meaning they are produced in
high volumes and sold quickly. This necessitates efficient supply chain management and
distribution networks to ensure products reach consumers promptly.
Branding and Marketing: Branding and marketing play crucial roles in the FMCG sector due
to the competitive nature of the market. Companies often invest heavily in advertising
campaigns and promotions to differentiate their products and capture consumers' attention.
Price Sensitivity: FMCG products are often price-sensitive, meaning consumers may switch
brands based on price fluctuations or promotions. This can lead to intense price competition
among FMCG companies.
Distribution Channels: FMCG companies utilize various distribution channels to reach
consumers, including supermarkets, convenience stores, online retailers, and traditional
mom-and-pop stores. The efficiency of these distribution channels is critical for ensuring
product availability and reaching a wide consumer base.
Global Market: The FMCG sector operates on a global scale, with multinational corporations
dominating the market. These companies often adapt their product offerings to suit local
preferences and market conditions.
Company: Imperial Tobacco Company of India Limited (ITC LTD)
❖ Establish: August 24, 1910
❖ 1925: Packaging and Printing: Backward Integration

❖ 1975: Entry into the Hospitality Sector - A 'Welcom' Move

❖ 1979: Paperboards & Specialty Papers - Development of a Backward Area

❖ 1985: Nepal Subsidiary - First Steps beyond National Borders

❖ 1990: Paperboards & Specialty Papers - Consolidation and Expansion

❖ 1990: Agri Business - Strengthening Farmer Linkages

❖ 2002: Education & Stationery Products - Offering the Greenest products

❖ Paperkraft in 2002. The Classmate range of notebooks was launched in 2003. Years
2007- 2009 saw the launch of Practical Books, Drawing Books, Geometry Boxes,
Pens and Pencils under the 'Classmate' brand. 'Paperkraft' offers a diverse portfolio in
the premium executive stationery and office consumables segment.
❖ 2000: Information Technology - Business Friendly Solutions
❖ 2001: Branded Packaged Foods - Delighting Millions of Households

❖ 2002: Agarbattis & Safety Matches - Supporting the Small and Cottage Sector
❖ 2005: Personal Care Products - Expert Solutions for Discerning Consumers

❖ 2010: Expanding the Tobacco Portfolio

Product:

Service:

1. FMCG (Fast-Moving Consumer Goods) Services:

• Education & Stationery Products: Through brands like Classmate and Paperkraft, ITC offers a
comprehensive range of notebooks, writing instruments, and other stationery items. They focus on quality,
design, and sustainability, catering to students and professionals alike.
 • Personal Care Products: ITC provides a variety of personal care products, including soaps, shampoos, and
skincare products under brands like Vivel, Fiama, and Savlon.

• Food Products: ITC offers a diverse portfolio of food products, including snacks, biscuits, ready-to-eat
meals, spices, and more, through popular brands like Sunfeast, Aashirvaad, and Bingo.

2. Agri-Business Services:

• FarmLink Services: ITC connects farmers with markets through its e-Choupal initiative, enabling them to
access information, products, and services, and improving their incomes.

• Food Ingredients: ITC provides high-quality food ingredients to the food industry, focusing on sustainable
sourcing and supply chain management.

3. Hotels & Hospitality Services:

• Luxury & Business Hotels: ITC Hotels offer luxury and business accommodation services across India, with
a focus on sustainable practices, world-class amenities, and exceptional guest experiences.

• Cuisine Services: ITC Hotels are renowned for their culinary excellence, offering a wide variety of dining
options, from traditional Indian cuisine to international delicacies.

4. Paperboards & Packaging Services:

• Packaging Solutions: ITC provides innovative packaging solutions for a wide range of industries, focusing
on sustainability, design, and functionality.

• Paperboard Manufacturing: ITC's paperboard products are known for their quality and environmental
responsibility, catering to the needs of packaging, printing, and publishing industries.

5. IT Services:

• ITC Infotech: ITC Infotech provides technology solutions and services to clients worldwide, specializing in
areas like digital transformation, data analytics, and IT infrastructure management.

6. Lifestyle Retailing:

• Apparel & Accessories: ITC’s Wills Lifestyle and John Players brands offer a range of fashion apparel and
accessories, focusing on contemporary designs and high-quality materials.

7. Sustainability & Social Responsibility:

• Environmental Initiatives: ITC is committed to sustainability through initiatives like waste management,
water conservation, and energy efficiency across its operations.

• Social Initiatives: ITC actively engages in community development programs, focusing on education, health,
and rural development, impacting millions of lives positively.
Statement of Problem:
This study will explain the strategic role of distribution channels in the FMCG industry. It will also comment on the
current situation of Kerala's distribution routes and associated challenges. It identifies four prototypes for FMCG
corporations to utilise based on the axis of access and per capita demand. It essentially divides markets into:
Urban markets have a high per capita demand for commodities and provide convenient market access. Emerging
markets have low per capita demand for commodities and easy market access.
Oasis markets have a high per capita demand for items and are difficult to access. These markets have enormous
potential due to high per capita demand. These are the markets.

These markets are at the bottom of the pyramid, with little per capita demand for commodities and poor market entry.
These markets will not produce instant returns, but they are critical to the long-term success of any plan. Effective
distribution of goods is critical if the country is to run properly. The issues that directly or indirectly affect the
distribution system are as follows: First, the price of things rises as they migrate from manufacturers to consumers.
They are handled by a variety of distributors due to the costs involved, such as transportation and handling, as well as
the distributive profit. In addition, bad economic conditions have an impact on the manufacturing sector's distribution
system. However, the unavailability

Motivation for solving problem:

The motivation behind studying retailer perception and distribution functions of ITC's premium brand products stem
from several key factors:

1. Market Competitiveness: Premium brand products often face intense competition from both local and
international brands. Retailers, being the primary touchpoint between these products and the end consumers,
significantly influence the brand’s visibility and consumer choice. By understanding retailers' perceptions,
ITC can better position its products to compete effectively in the market.

2. Optimizing Distribution Strategies: Effective distribution is the backbone of successful brand performance,
especially for premium products that rely on their exclusivity and quality. This study aims to identify gaps
and opportunities within ITC’s current distribution strategies, ensuring that products reach the right outlets at
the right time, thereby maximizing sales and market share.

3. Enhancing Retailer Relationships: Strong relationships with retailers are essential for driving sales and brand
loyalty. By exploring retailers' attitudes towards ITC's premium products, the company can tailor its
engagement strategies to foster stronger partnerships, ensuring that retailers are not just distributors but
advocates of the brand.
4. Adapting to Consumer Trends: Retailers are often the first to notice shifts in consumer preferences. By
tapping into retailer insights, ITC can better align its premium product offerings with emerging consumer
trends, ensuring that its products remain relevant and appealing to the target audience.

5. Sustaining Brand Equity: For premium products, maintaining a strong brand image is critical. Retailers play a
key role in how these products are perceived by consumers. A deep understanding of retailer perceptions
allows ITC to reinforce its brand equity, ensuring that its premium products continue to be seen as symbols of
quality and prestige.

Purpose of business analytics project

❖ Understand Retailer Sentiment: Examine the attitudes, preferences, and issues that retailers have while
interacting with ITC's premium items. This insight will enable ITC to modify its initiatives to increase retailer
satisfaction and engagement.

❖ Evaluate Distribution Efficiency: Evaluate the current distribution network's performance, identify
bottlenecks, and recommend improvements to ensure that ITC's premium products are always available in the
proper places, quantities, and times.

❖ Improve Strategic Decision-Making: Provide ITC with data-driven insights to help support strategic decisions
about product positioning, promotional activities, and retailer relationship management, resulting in increased
sales and market penetration.

❖ Align Products with Market demands: Ensure that ITC's premium products meet the changing demands and
expectations of both retailers and end consumers, preserving competitive advantage and increasing brand
loyalty.

❖ Optimize Resource Allocation: Determine where ITC can improve its distribution and marketing operations,
resulting in cost savings and enhanced efficiency.

Scope of business analytics project

Retailer Perception Analysis:
• Conduct surveys and interviews with retailers to gather qualitative and quantitative data on their perceptions
of ITC’s premium brand products.
• Analyze factors influencing retailer satisfaction, such as product quality, pricing, promotional support, and
after-sales service.
• Segment retailers based on their responses to identify distinct patterns and preferences.
Distribution Function Evaluation:
 • Map the existing distribution network for ITC’s premium products, identifying key distribution channels,
coverage areas, and logistics operations.
• Assess the efficiency of the distribution network by analyzing metrics such as delivery times, stock
availability, and order fulfillment rates.
• Identify any gaps or inefficiencies in the distribution process that may affect product availability and retailer
satisfaction.
Competitive Benchmarking:
• Compare ITC’s distribution and retailer engagement strategies with those of its competitors to identify best
practices and areas for improvement.
• Analyze market trends and consumer behavior to ensure ITC’s premium products remain competitive.
Data-Driven Recommendations:
• Utilize business analytics tools and techniques, such as data visualization, predictive analytics, and clustering,
to derive insights from the collected data.
• Develop actionable recommendations for ITC to improve retailer relationships, optimize distribution
strategies, and enhance the market performance of its premium brand products.
Implementation Roadmap:
• Provide a roadmap for implementing the recommended changes, including timelines, resource requirements,
and key performance indicators (KPIs) to track progress.
Geographical Scope:
• The project will focus on key markets where ITC’s premium brand products are sold, with an emphasis on
both urban and rural retail environments.
Stakeholder Involvement:
• Engage with various stakeholders within ITC, including marketing, sales, logistics, and supply chain teams,
to ensure that the project’s findings are comprehensive and actionable.

Limitations of business analytics project

1. The study had a limited time frame.

2. The sample size was insufficient to draw conclusions.
3. Some respondents were unfamiliar with the concept.
4. Respondents showed a lack of interest.
5. There was an area constraint.
6. A few respondents were unable to adequately answer the questions.
 Literature Review
Sr Research Author(year) Journal Name Findings of the study
no
Paper
1. A Study on DR.CH.LAKSHMI International The analysis discovered that the
Consumer NARAHARI Journal of Sunfeast biscuits had a significant
Preference (2022) Scientific market share in Kovilpatti,
Towards ITC Research in indicating astrong consumer
Sunfeast. Engineering and preference. Despite
Management identical satisfaction ratings,
(IJSREM) repurchase behavior varies by age,
education level,marital status, gender,
and location.
Retailers leverage manufacturer
brandsto increase consumer
attention, patronage, and loyalty,
emphasizing strong brand
relationships and marketingmethods.
2. A Study of Sheikh Farhan International A study conducted at malls in
Premium Price Ashraf, Cai Li, Journal of Lahore and Faisalabad discovered
Brands with Dr. Babak Academic that income,brand equity, and
Special Mehmood Research in brand connection
Reference to (2017) Business and influence consumer behaviour
Willingness of Social Sciences. towardsluxury brands. The
Customer to findings revealed asubstantial
Pay. correlation between brand
association, identity, image, and
premium brands. Consumers'
preferences for premium brands
have aconsiderable impact on their
actual purchasing behaviour,
highlighting
important decision-making
considerations.
3. The Impact of Ahmed H. Tolba International The study found that distribution
Distribution (2011) Journal of
intensity has a major impact on brand
Intensity on Marketing Studies
preference, which drives brand loyalty
BrandPreference
inEgypt's fuel business. Key elements
and Brand
influencing brand preference include
Loyalty.
affect, contentment, and perceived
quality. Understanding these
relationships can help businesses
enhance their market share, pricing
tactics, and overall brand
performance by using effective
distribution methods.
4. Business Ankita Kashyap International The study of ITC Ltd.'s Business
Responsibility (2017) Journal of Responsibility Report reveals
Reports- A Case Management & significantgaps, particularly in
Study of ITC Social Sciences adhering to GRI principles of
Ltd. Materiality and Balance.
The report lacks detailed information
on product transportation and
recycling, andfails to provide
disaggregated data, indicating a need
for enhanced transparency and
comprehensiveness in
their disclosures.
5. A Study on Gomathy M (2015) IOSR Journal of Retailers believe that informed
Retailer’s Business and consumers prioritize quality, health,
Perception on Management andsafety in their purchasing
Soya Products decisions. However, the lack of
with Special awareness about soya products
Reference to hinders sales, highlightingthe need
Thiruvallur for effective advertising and
District. certifications. Additionally,
minimizing prices and optimizing
distribution channels are essential for
gaining market share and ensuring
product availability.
6. Study of the Rajendra Jain Journal of According to the research, Indian
comparative (2011) Business and retailers have a variety of
perception of Retail perspectiveson the elements that
retailers towards Management influence private label sales
factors affecting Research development, particularly after-sales
sales growth of (JBRMR) service and perceived risk. However,
private labels in views of advertising, price,
India packaging, and brand image are
comparable across categories. This
emphasizes the importance of
developing targeted strategies to
addressspecific concerns and increase
private label sales.
7. Brand Awareness Smitha Nair (2013) IOSR Journal of The study on brand awareness and
and Retailer Business and retailer perceptions of packaged
Perception of Management flourbrands, with a focus on Elite
thePackaged (IOSR-JBM) atta, included 100 customers and
Flour Brands. 20 merchants. It emphasised
retailers' critical role in promoting
customer
awareness and happiness.
Recommendations to improve
consumer happiness and brand
awareness in the competitive
packaged flour industry
were presented.
8. A Study on Dr.T. Prabu International According to a study conducted in
Consumer’s Vengatesh, Ms. G. Journal for Coimbatore City, people priorities
Purchasing Archana. (2023) Multidisciplinary convenience and price when
Behaviour Research shopping online. Product quality,
Towards E- (IJFMR) brand reputation,and web design all
retailers with have a huge impact on perceptions.
Special E-retailers should focus on these
Referenceto criteria to attract and keep
Coimbatore customers, hence increasing their
City competitiveness in Coimbatore's e-
 retail sector.
9. A STUDY DR. S. International The research in Bangalore
ONBRAND JEEVANANDA Journal of analyzed perceptions of brand
PERCEPTION (2011) Research in equity between retail store
OF FMCG Commerce and managers and consumers in
GOODS Management FMCG. Both groups agreed that
branding and product quality
significantly influence purchasing
decisions, while packaging, pricing,
andpromotions have less impact.
This highlights the importance of
managing branding and quality to
enhance brand equity in FMCG
retail.
10. A Study of B. Navaneetha, -International The study on ITC Limited's cost of
Cost ofCapital D.Nikhila, Journal of capital from 2012-2017 revealed
of ITC Mrudula. Advance fluctuations in its Cost of Equity and
Limited V. Raj (2018) Research, Ideas Debt, showing varied financing
and Innovationsin strategies. ITC's high cost of debt
Technology capitalwas offset by tax benefits.
The study recommends issuing
preference shares and calculating the
break-even point to optimize
financing and profitability.

About the sector

The FMCG (Fast-Moving Consumer Goods) sector in India is one of the country's largest, with a diverse range of
items including food and beverages, personal care, home care, and over-the-counter healthcare products. This sector
is distinguished by products that sell quickly at low prices. ITC Limited is a key player in the fast-moving consumer
goods (FMCG) market, with a diversified range of products that includes education and stationery, personal care,
food, and lifestyle shopping. The sector is being propelled by increased urbanisation, rising disposable incomes, and
shifting consumer tastes.
Market Size
India's FMCG business is expected to be worth around $110 billion by 2024. The business has been continuously
expanding, fuelled by rising consumer demand, particularly in rural areas. The premium segment, which comprises
ITC's premium brand products in personal care, food, and stationery, is also quickly expanding as customers become
more brand-conscious and seek higher-quality options.
Market Share
ITC Limited holds a significant share of the Indian FMCG market, with its products spanning multiple categories. In
the education and stationery segment, ITC is one of the leading players with a market share of around 25% to 30%,
primarily driven by its Classmate and Paperkraft brands. In other FMCG categories, such as packaged foods and
personal care, ITC’s market share varies but remains competitive due to its strong brand presence and extensive
distribution network.
Sector Contribution to GDP
The FMCG sector contributes approximately 10% to India's GDP. This contribution is significant, reflecting the
sector's role in driving economic growth, generating employment, and catering to the daily needs of millions of
consumers. The sector's contribution to GDP is expected to increase as consumer demand continues to rise,
particularly in rural areas.
Sector Composition
The FMCG sector is broadly divided into the following segments:
• Food and beverages include packaged foods, snacks, drinks, dairy products, and processed foods. This is the
largest segment, accounting for more than half of the FMCG market.
• Personal care items include soaps, shampoos, skincare, cosmetics, and oral care products. This sector
accounts for around 25% of the market.
• Home Care: Products such as detergents, household cleansers, and air fresheners account for approximately
10-15% of the market.
• Education and stationery: Although a minor market, it is critical for companies like ITC. This category
includes notebooks, pens, and other stationery items.
• Healthcare: Over-the-counter healthcare products, such as vitamins, supplements, and wellness products,
make up approximately 10% of the market.
Sector & Sector Composition CAGR
➢ Overall FMCG Sector CAGR: The FMCG sector in India has been growing at a CAGR of approximately 9-
10% over the past few years.
➢ Food & Beverages: This segment has a CAGR of around 8-9%, driven by increasing consumer demand for
packaged and processed foods.
➢ Personal Care: Growing at a CAGR of about 7-8%, this segment is fueled by rising awareness of health and
hygiene and increasing disposable incomes.
➢ Home Care: The home care segment has a CAGR of 6-7%, with growth driven by urbanization and the
adoption of modern cleaning products.
➢ Education & Stationery: This segment, particularly the premium segment, has seen a CAGR of 10-12%,
reflecting the growing emphasis on quality educational products.
 ➢ Healthcare: The healthcare segment has been growing at a CAGR of around 8-9%, supported by increasing
health consciousness and the availability of OTC products.

Sector & Sector Composition growth/de-growth catalyst

Growth catalysts:
❖ Urbanization: The growing urban population promotes demand for FMCG products, particularly personal
care and packaged foods.
❖ Rural Market Expansion: The expansion of FMCG companies into rural markets with increased disposable
income has a substantial impact on growth.
❖ E-commerce: The proliferation of e-commerce platforms has made FMCG products more accessible,
resulting in increased sales across all categories.
❖ Consumer tastes: Changing consumer tastes for premium, organic, and sustainable products are fuelling
growth in certain areas.
De-growth Catalysts:
❖ Inflation: Rising costs of raw materials and inflation can lead to increased product prices, potentially reducing
consumer spending on non-essential FMCG products.
❖ Regulatory Changes: Stringent regulations, such as those related to packaging, labeling, and environmental
sustainability, could increase operational costs and impact profitability.
❖ Supply Chain Disruptions: Disruptions in the supply chain, whether due to natural disasters, pandemics, or
geopolitical tensions, can negatively impact the availability of FMCG products and slow down sector growth.
Government Initiatives & FDI
Government initiatives:

Make in India: The government's Make in India strategy has pushed FMCG companies to enhance local
manufacturing, hence lowering reliance on imports and strengthening the home economy.
GST Implementation: The Goods and Services Tax (GST) has simplified taxation, lowering the tax burden on
FMCG companies while increasing operational efficiency.
Rural Development Programs: Government initiatives to improve rural infrastructure and raise rural incomes
have indirectly increased demand for FMCG products in these areas.
Foreign direct investment (FDI):
100% FDI in FMCG: The Indian government authorizes 100% FDI in the FMCG sector under the automatic
route. This has drawn significant international investment, resulting in increased competition, innovation, and
industry growth.
FDI in Retail: The liberalisation of FDI in multi-brand retail has enabled international retailers to enter the
Indian market, hence driving growth and modernising the retail environment.
Porter 5 Force Model Analysis

1. Threat of New Entrants: Moderate

Barriers to Entry: The FMCG sector has high entry barriers due to significant capital requirements,
established brand loyalty, and the need for an extensive distribution network. New entrants would need
substantial resources to compete with established players like ITC, who already have strong brand recognition
and a vast distribution network.

Economies of Scale: Established FMCG companies benefit from economies of scale, allowing them to
produce and distribute products at lower costs, which can be challenging for new entrants to match.

Regulatory Requirements: The FMCG sector is subject to strict regulations, particularly in product safety,
packaging, and labeling, adding to the complexity and cost for new entrants.

Brand Loyalty: Premium brands, such as those offered by ITC, enjoy strong customer loyalty, making it
difficult for new entrants to attract consumers away from these established brands.
2. Supplier Bargaining Power: Low to Moderate

The FMCG business relies on a vast number of suppliers for raw materials, limiting the bargaining power of
any individual supplier. ITC and other large FMCG businesses frequently have long-term contracts with
suppliers, which further reduces supplier leverage.

Commodity Nature of Inputs: Many of the raw materials used in FMCG products are commodities with
minimal differentiation, limiting the suppliers' ability to negotiate effectively.

Backward Integration: Large FMCG firms such as ITC frequently engage in backward integration, which
involves controlling or influencing their supply chain, hence limiting supplier power.

3. Bargaining Power of Buyers: High

• Consumer Sensitivity: Buyers in the FMCG sector are highly sensitive to price, quality, and brand
reputation. With numerous alternatives available, buyers can easily switch brands if they perceive better value
elsewhere, giving them significant bargaining power.
 • Retailer Power: Retailers, especially large chains and supermarkets, hold considerable power over FMCG
companies. They often demand better margins, promotions, and favorable terms, as they control the shelf
space and product placement that are critical for sales.
• Online Retail: The rise of e-commerce platforms has increased buyer power by providing easy access to
price comparisons, product reviews, and alternative brands.
4. Threat of Substitutes: Moderate to High
• Alternative Products: The FMCG sector faces a high threat of substitutes as consumers can easily switch to
alternative products within the same category. For example, within the premium personal care segment,
consumers might switch between different brands or even to homemade or natural alternatives.
• Changing Consumer Preferences: Trends toward health-conscious, organic, or eco-friendly products can
lead consumers to substitute traditional FMCG products with those perceived as healthier or more
sustainable.
• Private Labels: Retailers’ own private label brands are increasingly sophisticated and are seen as viable
substitutes for established premium brands, often offered at lower prices.
5. Industry Rivalry: High
• Number of Competitors: The FMCG sector is highly competitive with numerous large players such as HUL,
P&G, Nestlé, and others competing directly with ITC across various product categories.
• Market Saturation: The market is highly saturated, particularly in urban areas, leading to intense
competition on price, quality, and brand differentiation.
• Brand Loyalty: While brand loyalty exists, the highly competitive nature of the industry forces companies to
constantly innovate, invest in marketing, and improve product offerings to maintain market share.
• Advertising and Promotion: High levels of advertising and promotion are required to maintain visibility and
consumer interest in a crowded market, leading to significant ongoing costs for FMCG companies.

About the company

ITC Limited is one of India's foremost private sector companies, with a diversified presence across various
sectors including Fast-Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri-Business, and
Information Technology. Established in 1910, ITC has evolved from a single-product company to a multi-
business conglomerate with a strong focus on sustainability, innovation, and creating long-term value for its
stakeholders. Headquartered in Kolkata, ITC is recognized for its commitment to nation-building and its
contribution to the Indian economy.
Brief History of company
1910: ITC was incorporated on August 24, 1910, under the name Imperial Tobacco Company of India Limited. The
company initially focused on the tobacco business.
1970s: ITC began diversifying into other sectors, recognizing the need to reduce dependency on tobacco. This led to
the establishment of businesses in hospitality (ITC Hotels) and paperboards (Bhadrachalam Paperboards).
1985: The company was renamed ITC Limited, reflecting its diversified business portfolio and reduced emphasis on
tobacco.
1990s: ITC continued its diversification strategy by entering the FMCG sector with the launch of brands like Wills
Lifestyle in apparel and Aashirvaad in packaged foods.
2000s: ITC expanded its FMCG portfolio significantly, introducing brands like Sunfeast (biscuits), Bingo! (snacks),
and Fiama (personal care). The company also launched its education and stationery products business, establishing
the Classmate and Paperkraft brands.
2010s: ITC strengthened its commitment to sustainability, achieving carbon, water, and solid waste recycling positive
status. It also focused on expanding its agri-business and ITC Infotech divisions.
2020s: ITC continues to innovate across its business segments, with a strong emphasis on premiumization, digital
transformation, and sustainability initiatives.

Brief Introduction about company

ITC Limited is a leading Indian conglomerate with a diversified business portfolio that spans multiple industries,
including FMCG, Hotels, Paperboards & Packaging, Agri-Business, and Information Technology. The company is
known for its world-class brands such as Aashirvaad, Sunfeast, Classmate, Fiama, and Savlon, which have become
household names across India. ITC is also one of the largest hotel chains in India, known for its luxury properties that
emphasize sustainability and Indian heritage.

With a commitment to sustainable development, ITC has achieved multiple sustainability milestones, including being
carbon, water, and solid waste recycling positive for several years. The company’s 'Triple Bottom Line' approach
focuses on creating economic, social, and environmental value, positioning ITC as a leader in sustainable business
practices.

Brief Notes on Top Management

1. Sanjiv Puri - Chairman & Managing Director:

• Sanjiv Puri is the Chairman and Managing Director of ITC Limited. He joined ITC in 1986 and has held
various positions across different divisions of the company, including operations, manufacturing, and
international business. He was appointed as the CEO in 2017 and later became the Chairman in 2019. Under
his leadership, ITC has focused on innovation, digital transformation, and sustainability. Puri is known for
steering ITC through its diversification and premiumization strategies, driving growth across all business
segments.

2. Nakul Anand - Executive Director:

• Nakul Anand oversees ITC's Hotels, Travel & Tourism, and Lifestyle Retailing businesses. He has been with
ITC for over four decades and has played a pivotal role in making ITC Hotels one of the largest and most
respected hospitality chains in India. Anand is also recognized for his contributions to the sustainability
 initiatives within ITC's Hotels division, particularly the 'Responsible Luxury' ethos, which emphasizes
environmental stewardship.

3. S. Sivakumar - Group Head, Agri and IT Businesses:

• S. Sivakumar heads ITC's Agri-Business division and is responsible for the company's pioneering e-Choupal
initiative, which has transformed the rural agricultural landscape by empowering farmers with information
and market access. He also oversees ITC Infotech, the company’s IT services subsidiary. Sivakumar's
leadership in the agri-business has helped ITC build a robust backward integration model, ensuring a reliable
supply of high-quality raw materials for its FMCG business.

4. B. Sumant - Executive Director:

• B. Sumant is responsible for ITC's FMCG Businesses, including Cigarettes, Foods, Personal Care, and
Education & Stationery Products. With extensive experience in marketing, operations, and strategic planning,
Sumant has been instrumental in expanding ITC’s FMCG portfolio and driving innovation. He has also
focused on building ITC's distribution network and leveraging digital technologies to enhance customer
engagement and operational efficiency.

5. Rajiv Tandon - Chief Financial Officer:

• Rajiv Tandon is ITC's Chief Financial Officer and plays a crucial role in managing the company's financial
operations, investor relations, and strategic financial planning. Tandon has been with ITC for several years
and is known for his expertise in financial management, risk mitigation, and driving financial discipline
across the organization.

Companies Product / Service

ITC Limited offers a diverse range of products and services across its business segments:
• FMCG: Includes personal care (Fiama, Vivel), foods (Aashirvaad, Sunfeast, Bingo!), education & stationery
products (Classmate, Paperkraft), and lifestyle retailing (Wills Lifestyle).
• Hotels: Operates luxury hotels under brands like ITC Hotels and Welcomhotel.
• Paperboards & Packaging: Supplies high-quality paperboards and packaging solutions.
• Agri-Business: Engages in procurement, processing, and trading of agri-products.
• Information Technology: ITC Infotech provides IT services and solutions.
 Michael Porter Value chain Analysis
Primary Activities:
Inbound Logistics: Efficient supply chain management through the e-Choupal initiative for raw material
sourcing.
Operations: Highly automated and quality-controlled manufacturing processes across various FMCG and non-
FMCG divisions.
Outbound Logistics: Extensive distribution network covering urban, semi-urban, and rural areas.
Marketing & Sales: Strong brand portfolio, aggressive marketing strategies, and extensive promotional activities.
Service: Customer support
through various channels, especially in the hospitality sector.
Support Activities:
Firm Infrastructure: Strong leadership and management systems.
Human Resource Management: Focus on employee development and retention.
Technology Development: Continuous innovation in products and processes.
Procurement: Strategic sourcing and partnerships to ensure quality and cost-efficiency.

Market Penetration of product / service Rural, Semi Urban & Urban

Urban Areas: Strong presence with a focus on premium and differentiated products, significant market share in
education & stationery, personal care, and packaged foods.
Semi-Urban Areas: Growing penetration with mid-tier product offerings, leveraging ITC’s extensive distribution
network.
Rural Areas: Expansion through affordable product lines and initiatives like e-Choupal, which improves reach and
supply chain efficiency.
Segment, Target & Positioning
Segment: ITC segments its market based on demographic, geographic, and psychographic factors.
Target: Targets a wide range of customers, from premium (urban consumers) to value-seeking (rural consumers).
Positioning: ITC positions its products as high-quality, value-driven, and innovative, with a strong emphasis on
sustainability.

Sales & Distribution Channels

• Direct Distribution: Extensive network of company-owned warehouses and distribution centres.
• Indirect Distribution: Partnerships with wholesalers, retailers, and online platforms.
• E-commerce: Growing presence on digital platforms and direct-to-consumer sales via ITC's e-store.
Concept of Margin: GMROI & ROI of Product / Service
• GMROI (Gross Margin Return on Investment): ITC focuses on maximizing GMROI by ensuring high-
margin products like premium personal care items and leveraging efficient supply chains.
• ROI (Return on Investment): ITC’s ROI strategy involves reinvesting in high-growth areas like FMCG and
hotels, ensuring sustainable long-term growth.
Promotional Mix of Product
• Advertising: Extensive use of TV, digital, print media, and social media campaigns.
• Sales Promotions: Offers, discounts, and loyalty programs to attract customers.
• Public Relations: Corporate social responsibility initiatives and sustainability efforts.
• Personal Selling: Direct interaction with customers through events and in-store promotions.
• Direct Marketing: Email campaigns, SMS marketing, and personalized promotions.
Recent Merger & Acquisition
• Merger & Acquisition: ITC has strategically acquired and merged with companies in the FMCG and
hospitality sectors to expand its portfolio and market reach. Specific recent examples would need to be
checked for the latest data.
Application of Marketing Tools
• SWOT Analysis: To identify strengths, weaknesses, opportunities, and threats.
• BCG Matrix: To assess the growth potential and market share of various product lines.
• 4P's/7P's Analysis: To optimize product, price, place, promotion (and people, process, physical evidence in
services).
• Customer Relationship Management (CRM): To enhance customer engagement and loyalty.

SWOT – Company & Product / Service

• Strengths: Strong brand portfolio, extensive distribution network, diversified business.
• Weaknesses: Dependence on tobacco revenue, competition in FMCG.
• Opportunities: Growth in rural markets, digital transformation, sustainable products.
• Threats: Regulatory changes, economic slowdown, intense competition.
BCG Matrix
• Stars: FMCG premium products like Aashirvaad and Classmate in high-growth markets.
• Cash Cows: Cigarettes, Paperboards & Packaging with high market share but slower growth.
• Question Marks: New FMCG categories like health foods.
• Dogs: Non-core segments with low market share and growth.
4P’s / 7P’s Marketing Mix
• 4P’s (Product, Price, Place, Promotion): Applied to ITC’s FMCG products.
• 7P’s (Product, Price, Place, Promotion, People, Process, Physical Evidence): Applied to ITC’s service-
oriented businesses like hotels.
PLC (Product Life Cycle)
 • Introduction: Launch of new products like organic foods, premium stationery.
• Growth: Expanding distribution, increasing marketing spend.
• Maturity: Established products like Sunfeast and Aashirvaad with stable demand.
• Decline: Potential phase-out of older or less popular product lines.
Product / Service - Unique Selling Propositions (USP)
• Quality and Innovation: High-quality products with constant innovation, such as biodegradable packaging.
• Sustainability: Commitment to environmentally friendly practices.
• Brand Trust: Strong brand equity and consumer trust in ITC products.
The McKinsey 7S Framework
• Strategy: Diversification and innovation across business segments.
• Structure: Decentralized structure with strong governance.
• Systems: Efficient supply chain management, advanced IT systems.
• Shared Values: Commitment to sustainability and customer satisfaction.
• Skills: Expertise in multiple industries, strong R&D capabilities.
• Style: Leadership focused on long-term growth and sustainability.
• Staff: Highly skilled workforce with continuous training and development.
Detailed Debate and Analysis of Area Chosen Using Appropriate Citations
A detailed analysis would require selecting a specific topic (e.g., ITC’s sustainability initiatives or market penetration
strategies) and using academic and industry sources to support the analysis.
Constructs and Variables with Citations
For example, in studying consumer buying behavior:
• Constructs: Brand loyalty, perceived quality, price sensitivity.
• Variables: Frequency of purchase, brand switching, willingness to pay. Citations from academic journals or
industry reports would support these constructs.
Conceptual Framework
A conceptual framework could explore the relationship between marketing strategies (independent variable) and
consumer loyalty (dependent variable), with mediating variables like brand perception and product quality.
Hypothesis Development (if any)
Example Hypothesis: "There is a positive relationship between ITC's sustainability practices and consumer loyalty
towards its premium FMCG products."

Chapter 3: Design and Methodology

Introduction
The design and methodology section outlines the systematic approach used to conduct the research on retailer
perception and distribution functions of ITC's premium brand products. This study aims to provide insights into how
retailers perceive ITC’s premium products and how distribution strategies impact the market penetration of these
products across different regions.

Research Objective
The primary objective is to assess how retailers and consumers perceive the importance of brand equity in
Berhampore city.
Secondary Objective:
• Understand the impact of packaging on the perceived value of FMCG.
• Understand the impact of pricing on the perceived value of FMCG.
• To understand the influence of promotion on customer purchases of FMCG.
• Understanding the function of quality as a strategic marketing strategy. The five primary variables in this analysis
are branding, packaging, pricing, promotions, and quality.
• To investigate the retailer's impression of ITC Premium product sales.
• Research the quality of retail services.
• To enquire about the problems and difficulties encountered by retailers with vendors.
Research Design
The research design is a descriptive and exploratory study, aiming to provide a comprehensive understanding of the
subject matter. This mixed-method approach combines both qualitative and quantitative methods to capture the
nuances of retailer perception and the effectiveness of distribution strategies.
• Descriptive Research: This design is used to describe the current state of retailer perception and the
distribution processes for ITC’s premium products. It helps in understanding the existing practices,
challenges, and opportunities within the distribution network.
• Exploratory Research: This aspect of the design is used to explore new insights and underlying factors that
affect retailer perceptions and distribution efficiency. It allows for the identification of patterns and trends that
may not have been previously considered.

Research Methodology
Area of Research: The area of study is based on Sales.
Sources of Data: The primary data for this research was gathered through a comprehensive survey. This method
allowed us to obtain firsthand information directly from the respondents, ensuring the data’s relevance and accuracy.
The survey was meticulously designed to cover all aspects of our research, providing us with a robust foundation for
our analysis. Secondary data were collected through a structured questionnaire, which was circulated among
participants to obtain responses. Additionally, research papers published in national and international journals,
reports, magazines.
Types of Research: Exploratory
Paper Type: Qualitative
Sampling Technique: Simple random sampling of probability sampling will be used. Population of the study: The
population of the study will cover working professionals and students.
Sampling Size: The sampling size of the study includes 60 respondents which are Collected by Retailer.
The technique of analyzing data: The researcher used statistical tools like mean, percentage, etc. for analyzing the
data. Visual aid like charts, tables, Graphs, etc. will be used for better representation and understanding of the data.
Questionnaire design

1. Age Specification
Table 1: Age-wise respondents

Age No of Respondent % of Respondent

21-30 5 8%
31-40 19 32%
41-50 25 42%
51-60 11 18%
Figure
Grand Total 60 100%
1: Age-
wise respondents

Age wise Respondent

18% 8% 21-30
31-40
32%
41-50
42% 51-60

Interpretation:
Table 1 & Figure 1 shows that 8%
of the respondent age range from 21-30,32% range from31-40, 42% range from 41-50,19% range from
51-60.

2. Which of the following ITC premium brands do you carry?

Table 2: Which ITC Premium Brand Carry respondents

Which of the following ITC premium brands No of % of Respondent
do you carry? Respondent
Classmate Notebooks 41 68%
Paperkraft 0 0%
Both 19 32%
Grand Total 60 100%

Which of the following ITC premium

brands do you carry?

32% Classmate Notebooks

Paperkraft
0% 68% Both

Figure 2: Which ITC Premium Brand Carry respondents

Interpretation:
As shown in the Table 2 and Figure 2 that 32% of respondents are Classmate Notebooks, 0% are from Paperkraft,
68% are from National Distributers and 40% are from Both (Paperkraft & Classmate) Notebooks.

3. Do any customers hesitate to take a classmate Pulse notebook?

Table 3: Any customers hesitate to take a classmate Pulse notebook respondent

Do any customers hesitate to take a classmate No of % of Respondent
Pulse notebook? Respondent
Yes 55 8%
No 5 92%
Grand Total 60 100%
 Do any customers hesitate to take
a classmate Pulse notebook?

8%
Yes
No

92%

Figure 3: Any customers hesitate to take a classmate Pulse notebook respondent

Interpretation:
As shown in the Table 3 and Figure 3 that 92% of respondents are Yes, 8% are NO.

4.Which brand of Notebooks is bestselling in your store?

Table 4: Brand of Notebooks is bestselling in your store Respondents

Which brand of Notebooks is Best selling in your No of % of
store? Respondent Respondent
Camlin 9 15%
Classmate 39 65%
Domes 1 2%
Maxmind 7 12%
Which brand of Notebooks is best selling in
Pioneer your store? 4 7%
Grand Total 60 100%

7% 15% Camlin
11%
2% Classmate
Figure 4: Brand of
Domes
Notebooks is
65% Maxmind
bestselling in your
Pioneer store Respondents

Interpretation:
As shown in the Table 4 and Figure 4 that 65% of respondents are Classmate Notebooks, 15% are from Camlin, 2%
are from Domes and 12% are from Maxmind, 7% are form Pioneer.

5.Which brand of pen is Best selling in your store?

Table 5: Brand of pen is bestselling in your store Respondents

Which brand of pen is best No of Respondent % of Respondent

selling in your store?
Cello 20 33%
Classmate Pen 33 55%
Flair 5 8%
Linc 2 3%
Grand Total 60 100%

Which brand of pen is best selling in your

store?

8%3%
34% Cello
Classmate Pen

55% Flair
Linc

Figure 5: Brand of pen is bestselling in your store Respondents

Interpretation:

As shown in the Table 5 and Figure 5 that 55% of respondents are Classmate pen, 33% are from Cello, 8% are from
Flair and 3% are from Linc.
6.Which Premium brand of Notebooks is best selling in your store?

Table 6: Premium Brand of Notebooks is bestselling in your store Respondents

Which Premium brand of Notebooks is best selling No of % of

Which
in your Premium
store? brand of Notebooks
Respondent isRespondent
Camlin best selling in your store?
10 17%
Classmate Pulse 50 83%
Domes 0 0%
0% 17%
Grand Total 60 Camlin 100%
Classmate Pulse
Domes
83%

Figure 6: Premium Brand of Notebooks is bestselling in your store Respondents

Interpretation:
As shown in the Table 6 and Figure 6 that 83% of respondents are Classmate Notebooks, 17% are from Camlin, 0%
are from Domes.

7.Which Premium brand of pen is best selling in your store?

Table 7: Premium Brand of pen is bestselling in your store Respondents
Which Premium brand of pen is best selling in your No of % of
store? Respondent Respondent
Paperkraft 10 17%
 Parker 17 28%
Pierre cardin 33 55%

Which Premium brand of pen is best

selling in your store?

17%
Paperkraft
Parker
55%
28% pierre cardin

Figure 7: Premium Brand of pen is bestselling in your store Respondents

Interpretation:

As shown in the Table 7 and Figure 7 that 55% of respondents are Pierre cardin, 17% are from Paperkraft, 28% are
from Parker.

Finding of the study:

•The study reveals that 68% of retailers exclusively stock ITC's Classmate notebooks, while 32% carry both
Classmate and Paperkraft brands.

•In this study, 8% of customers expressed hesitation in purchasing the Classmate Pulse notebook, citing high prices
as a concern raised with the retailers. However, 92% of customers showed no reluctance in choosing the Classmate
Pulse notebook.

•In this study, I found that Classmate notebooks constitute 65% of the top-selling products in the Baharampur market.

•The study revealed that Classmate pens contribute to 55% of the best-selling pens, while Cello pens represent 33%
in the Baharampur market.

•This study found that 83% of ITC's premium brand, Classmate Pulse notebooks, are the best-selling in retail outlets
across Baharampur.

•This study found that 55% of the premium pen brand Pierre Cardin is the best-selling, with Parker for 28% and
Paperkraft for 17% in Baharampur retail outlets.

Data Analysis and Findings

Demographic Profile of the Respondents

The demographic profile provides an overview of the characteristics of the respondents participating in the study.
This information is crucial for understanding the diversity of the sample and for analyzing how different
demographic factors may influence the findings.

• Age: The respondents’ ages are categorized into different groups (e.g., 18-25, 26-35, 36-45, 46-55, 56+).

• Gender: The distribution of male and female respondents.

• Education Level: Classification of respondents based on their highest level of education (e.g., high school,
undergraduate, postgraduate).

• Occupation: The respondents’ primary occupation (e.g., retailer, shop owner, manager).

• Region: Geographical distribution across urban, semi-urban, and rural areas.

• Income Level: Income ranges of respondents, which could influence their purchasing power and business
decisions.

Descriptive Statistics

Descriptive statistics summarize the main features of the data collected and provide a simple overview of the sample
and the measures.

• Mean: The average value of the data set.

• Median: The middle value when the data set is ordered.

• Mode: The most frequently occurring value in the data set.

• Standard Deviation: Measures the amount of variation or dispersion of the data set.

• Frequency Distribution: The number of times a value appears in the data set.

• Percentage Distribution: Represents the percentage of each category relative to the total sample.

Impact of Demographic Variables on Dependent and Independent Variables

This section examines how demographic variables (age, gender, education, etc.) impact both the dependent and
independent variables of the study.

• Dependent Variable: Could be retailer perception of ITC’s premium products or satisfaction with
distribution channels.

• Independent Variables: Could include factors like distribution efficiency, product quality, pricing strategy,
and promotional activities.

• Statistical Techniques: ANOVA (Analysis of Variance) or regression analysis can be used to assess the
impact of demographic variables on these factors.
Reliability

Reliability refers to the consistency of a measurement instrument or survey. It indicates how well the instrument
produces stable and consistent results over time.

• Test-Retest Reliability: Measuring the stability of responses over time.

• Internal Consistency: Ensuring that all parts of the measurement tool contribute equally to the overall score.

Composite Reliability

Composite reliability assesses the internal consistency of a set of variables that represent a single construct.

• Formula: Composite reliability is calculated using the factor loadings and error variances of the indicators. It
is generally considered acceptable if the value is 0.7 or higher.

• Application: Used in structural equation modeling to evaluate the reliability of latent constructs.

Cronbach's Alpha

Cronbach's Alpha is a measure of internal consistency, i.e., how closely related a set of items are as a group. It is a
commonly used statistic to assess the reliability of scales.

• Interpretation:

o 0.9 and above: Excellent

o 0.8 – 0.9: Good

o 0.7 – 0.8: Acceptable

o 0.6 – 0.7: Questionable

o 0.5 – 0.6: Poor

o Below 0.5: Unacceptable

Validity

Validity refers to how well a test measures what it is supposed to measure.

• Content Validity: The extent to which the items on a test represent the entire range of possible items the test
should cover.

• Construct Validity: The degree to which a test measures what it claims to be measuring.

• Criterion Validity: The extent to which a measure is related to an outcome.

Convergent Validity
Convergent validity is the degree to which two measures of constructs that theoretically should be related, are in fact
related.

• Assessment: This is often assessed using correlation coefficients or through factor analysis, where items that
are supposed to measure the same construct load on the same factor.

Discriminant Validity

Discriminant validity tests whether concepts or measurements that are supposed to be unrelated are, in fact,
unrelated.

• Assessment: By showing low correlations between the measures of different constructs, or by comparing the
average variance extracted (AVE) for a construct with the shared variance between constructs.

Statistical Analysis Interpretation

This section involves interpreting the results obtained from the statistical analysis to draw meaningful conclusions.

• Regression Analysis: Determines the relationship between independent and dependent variables. For
example, it might show how distribution efficiency affects retailer satisfaction.

• ANOVA: Used to compare means across different groups (e.g., age groups) to see if there is a significant
difference.

• Factor Analysis: Helps in understanding the underlying structure of the data by identifying clusters of related
variables.

• Correlation Analysis: Measures the strength and direction of the relationship between two variables.

• P-Values: Indicate whether the results are statistically significant. A p-value of less than 0.05 typically
indicates significance.

Chapter 5: Conclusion and recommendations

1. Findings and Analysis

This section summarizes the key findings of the study, drawing from the data analysis conducted in previous
chapters. It highlights the significant trends, patterns, and relationships identified in the research.

• Retailer Perception: The study found that retailers perceive ITC's premium products positively, especially
regarding product quality and brand reputation. However, challenges were noted in terms of pricing and
promotional support.

• Distribution Efficiency: The analysis revealed that ITC's distribution network is extensive but faces issues in
rural areas, where supply chain disruptions and less frequent deliveries impact retailer satisfaction.
 • Impact of Demographics: Demographic factors such as region, retailer size, and education level
significantly influence retailer perception. Urban and semi-urban retailers reported higher satisfaction
compared to rural counterparts.

• Reliability and Validity: The research instruments used demonstrated high reliability (Cronbach’s Alpha >
0.7) and validity, ensuring the credibility of the findings.

2. Suggestions

Based on the findings, the following suggestions are made to improve ITC's retailer relationships and distribution
functions for premium products:

• Enhance Distribution in Rural Areas: ITC should consider increasing the frequency of deliveries and
optimizing logistics to address supply chain issues in rural regions. Introducing a hub-and-spoke model could
improve efficiency.

• Targeted Pricing Strategies: Implement differentiated pricing strategies for urban, semi-urban, and rural
areas, considering the varying purchasing power and competitive landscape in these regions.

• Retailer Support Programs: Develop and expand retailer incentive programs, offering promotional support,
discounts, and training to enhance retailer engagement and satisfaction.

• Digital Tools for Retailers: Introduce digital tools or platforms for retailers to place orders, track deliveries,
and access promotional materials easily, improving the overall supply chain experience.

• Feedback Mechanism: Establish a robust feedback mechanism that allows retailers to voice their concerns
and suggestions, ensuring continuous improvement in distribution practices.

3. Conclusion

The study on retailer perception and distribution functions of ITC's premium brand products reveal significant
insights into the dynamics influencing these high-end offerings in the

market. Retailers generally perceive ITC's premium products, such as Classmate and Paperkraft, as high-quality and
trustworthy, which aligns with the brand's established reputation. However, challenges persist in terms of inventory
turnover, with some retailers expressing concerns about slower sales compared to more mass-market products. The
distribution functions play a crucial role in addressing these challenges, ensuring timely replenishment and adequate
stock levels to meet demand fluctuations.

Efficient distribution networks and strategic partnerships with retailers are essential for optimizing shelf presence and
maximizing sales. The study highlights the need for ITC to focus on enhancing its support for retailers through
targeted marketing initiatives,

promotional activities, and training programs that emphasize the unique value propositions of its premium products.
Additionally, leveraging data analytics to predict demand and
streamline distribution could further improve performance. Overall, ITC's premium brand products hold substantial
potential in the market, but their success relies on a well- coordinated approach that addresses retailer concerns and
strengthens distribution efficiencies. Managerial Implication.

The findings of this study have several implications for ITC’s management:

• Strategic Decision-Making: Management should consider investing in improving rural distribution networks
and adopting technology-driven solutions to enhance supply chain efficiency.

• Resource Allocation: Resources should be allocated toward developing differentiated strategies for urban,
semi-urban, and rural markets, ensuring that each segment’s unique needs are met.

• Retailer Engagement: Management should prioritize retailer relationship management, offering tailored
support and incentives to strengthen partnerships and foster loyalty.

• Long-Term Planning: The insights gained from this study can inform long-term strategic planning, helping
ITC to align its distribution strategies with evolving market dynamics.

Future Scope of Work

This study opens several avenues for future research:

• Longitudinal Study: A longitudinal study could be conducted to assess how changes in ITC's distribution
strategies impact retailer perception and market penetration over time.

• Comparative Analysis: Future research could compare ITC’s distribution strategies with those of its
competitors to identify best practices and areas for improvement.

• Consumer Perspective: While this study focused on retailer perception, future research could explore the
consumer perspective, particularly how distribution efficiency impacts consumer satisfaction and brand
loyalty.

• Impact of Digitalization: With the increasing digitalization of supply chains, a study on the impact of digital
tools and platforms on distribution efficiency and retailer satisfaction could provide valuable insights.

• Sustainability in Distribution: Investigating the integration of sustainable practices in distribution and its
impact on both retailer perception and operational efficiency could be another area of interest.

Chapter 6: Practical Learning & Contribution

Internship work and summary
Internship Designation & Duration
Designation – Sales and marketing intern

Duration – 60 days
Internship – Roles & Responsibilities
 It involves managing team of salesmen, working with salesmen on daily basis.
Includes daily presence in market to ensure products are getting pushed as per goals,
placed correctly to improve visibility, outlets are covered, expansion of outlets,
execution of marketing strategies in shops.
Focus is to continuously find opportunities in market for better coverage and expansion
of business.
Monitoring timely delivery of products from Retail depot to outlets, pitching new
shops/outlets, getting them registered under our various schemes.
Attend daily meetings with salesmen in the start and end of the day for driving targets
planning of next day.
It will be a core field job typically need to spend 9 am to 4 pm in market and 4 pm to 7
pm in Retail Depot for desk work.
Those who are keen for sales and want to pursue career in sales can apply for this
opportunity.

Tasks Performed:

1. I have successfully executed a distribution drive for ITC's premium products in the
Baharampur market. The range included Classmate Pulse Notebooks, Paperkraft
Notebooks and Pens, Classmate Fountain Ink Pens, as well as Classmate Pens such as
Octane, Hook Spin, and Colour Burst.
2. I conducted a comprehensive survey across all outlets, focusing on ITC's premium
product range. This included detailed assessments and evaluations of the availability,
placement, and consumer response to these high-end offerings.
3. I designed and implemented strategic in-store displays at select outlets to enhance the
promotion of ITC's premium brand, Classmate Notebooks. These displays were
crafted to attract attention, increase product visibility, and drive consumer
engagement.
4. I spearheaded the promotion of Classmate's Octane Pen across all outlets, ensuring
prominent placement and maximizing its visibility to drive customer interest and
sales.
5. ITC introduced a new '11+1' promotional scheme, and I took the initiative to design acompelling poster to
effectively communicate the offer and attract customer

Contribution to the Host Organization: -

1. provide the order values or details you'd like to include for the Balarampur market
over the last two months:
Last 3 Month Distributor Sales:
New Outlet Open in Berhampur Market:

Sales Person Name: Subhajit Chakraborty Sales Person Name: Suman Biswas

Learning:
1.Gaining Knowledge on FMCG General Trade Consumer Buying Behavior: Understanding
how consumers in general trade settings make purchasing decisions regarding education
stationery products, identifying factors that influence their choices, and recognizing patterns
in buying behavior.
2.Comparison of Sell-Out Strategies: Analyzing and comparing the sell-out strategies used by
different FMCG companies in the education stationery sector, identifying best practices, and
evaluating their effectiveness in driving sales.
3.First-Hand Experience on FMCG Demand Generation Activities: Engaging in demand
generation activities within the education stationery segment, assessing various approaches to
determine the most cost-efficient models for driving product demand and increasing market
penetration.
4.Analyzing Market Penetration Techniques: Understanding and evaluating different market
penetration techniques employed by FMCG companies in the education stationery segment,
and identifying which approaches yield the highest return on investment for ITC's products.
5.Evaluating Distribution Efficiency: Gaining insights into the distribution networks of
FMCG products, particularly education stationery, to assess the efficiency of ITC's current
distribution channels and identify areas for improvement.
6.Understanding Promotional Strategies: Studying the effectiveness of various promotional
strategies, such as in-store promotions, discounts, and bundling offers, in driving consumer
engagement and boosting sales of ITC's stationery products.
7.Learning Competitive Pricing Tactics: Analyzing how different FMCG companies price
their education stationery products and understanding the impact of competitive pricing on
market share, customer loyalty, and overall profitability for ITC.

Challenges:
•Intense Competition: Facing stiff competition from both established brands and emerging
local players in the stationery market.
•Price Sensitivity: Navigating the highly price-sensitive market where consumers often
prioritize cost over brand loyalty, especially in the education sector.

•Distribution Challenges: Ensuring widespread availability of premium products in smaller

towns and rural areas, where distribution networks may be less developed.
•Product Differentiation: Maintaining product differentiation and perceived value amidst a
market flooded with similar products at lower prices.
•Brand Awareness: Building and sustaining strong brand awareness in a fragmented market
with varying levels of brand recognition across regions.
•Sustainability Concerns: Balancing the need for sustainable practices with cost
considerations, as consumers and regulatory bodies increasingly prioritize environmentally
friendly products.
•Retailer Pushback: Convincing retailers to stock and promote premium products that might
have slower turnover compared to cheaper alternatives.
•Counterfeit Products: Combating the issue of counterfeit products in the market, which can
erode brand equity and consumer trust.
•Consumer Preferences: Keeping up with changing consumer preferences, especially with the
rising demand for customization and trendy designs in stationery products.
 Suggestion & Recommendation:
•Enhance Consumer Engagement: Launch interactive campaigns and educational workshops
in schools and colleges to build brand loyalty and increase product visibility among the
youth.
•Leverage Digital Channels: Invest in digital marketing strategies, including social
media campaigns and influencer partnerships, to target tech-savvy students and young
professionals.
•Expand Product Range: Consider introducing eco-friendly stationery options, as
sustainability is a growing concern among consumers, especially in urban markets.
•Strengthen Distribution Channels: Optimize distribution networks to ensure better
availability of premium products in tier-2 and tier-3 cities, where brand recognition is
growing.
•In-Store Promotions: Increase point-of-sale marketing efforts by offering bundle deals,
discounts, and loyalty programs to encourage bulk purchases from both
individual consumers and institutional buyers.
•Competitive Pricing Strategies: Review pricing strategies to ensure competitiveness without
compromising on quality, especially for premium product lines.
•Retailer Incentive Programs: Develop incentive programs for retailers who achieve sales
targets for premium products, encouraging them to actively promote ITC’s range.
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