a study on “entry level marketing strategy for itc to

A STUDY ON “ENTRY LEVEL MARKETING STRATEGY FOR ITC TO

ENTER RTC (Ready to cook) INDUSTRY

BY

Mr P.U. SANDEEP KUMAR

USN: 1NZ13MBA08

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Mrs. Niviya Feston Mr. Abhishek Vinay Singh

Asst.Professor REGIONAL SALES MANAGER

Department of Management Studies

NEW HORIZON COLLEGE OF ENGINEERING

OUTER RING ROAD, MARATHALLI, BANGALORE

Batch 2013 - 2015

ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of the project

would be incomplete without the mention of the people who made it possible, whose

constant guidance and encouragement crowned the effort with success.

I express my sincere gratitude to our beloved Director/Principal

Dr. MANJUNATH who always has been a tremendous source of inspiration and

strength to me.

I would like to convey my sincere regards to Dr SHEELAN MISRA, Prof. and Head,

Department of MBA for having encouraged me constantly and supporting me

throughout the project.

I would like to convey my sincere regards to Mr. ABHISHEK VINAY SINGH

REGIONAL SALES MANAGER-SOUTH, ITC ltd., Bangalore who was my

external guide for his valuable suggestion and necessary guidance during the course of

the project.

I would like to convey my sincere regards to Mrs. NIVIA FESTON, Assistant

Professor, Department of MBA who was my internal guide for his continuous

encouragement and guidance which helped me greatly to in the course of the project.

Finally I thank my parents and friends who had been constant source of inspiration for

the completion of this project.

TABLE OF CONTENTS

CHAPTER TITLE OF CHAPTER PAGE NO.1 Introduction

1.1 Introduction about the internship1.2 Topic of the study1.3 Need for the study1.4 Objectives of the study1.5 Scope of the study1.6 Methodology adopted1.7 Limitations of the study1.8 Review of Literature

1-5

2 Industry and Company profile2.1 RTC Industry India2.2 Company profile2.3 Products portfolio2.4 Vision2.5 Mission2.6 Core values2.7 Areas of operation2.8 Infrastructural facilities2.9 Competitors information2.10 SWOT analysis of ITC limited2.11 Future Growth and Prospects

6-25

3 Theoretical Background of study3.1 Strategy3.2 Marketing strategic3.3 Market entry strategic3.4 Porters five forces analysis3.5 Strategies for entering new business

26-29

4 Data analysis and Interpretation 30-495 5.1 Findings

5.2 Suggestions5.3 Conclusion5.4 Bibliography

50-58

AnnexureQuestionnaire

LIST OF TABLES AND CHARTS

S N TABLES AND CHARTS PAGE NO4.1 Table and chart showing age group for the respondents 304.2 Table and chart showing the gender for the respondents 314.3 Table and chart showing the educational qualification of the

respondents32

4.4 Table and chart showing the occupation of the respondents 334.5 Table and chart showing the income of the respondents 344.6 A table and chart showing the awareness of ready to cook food

products35

4.7 A table and chart showing the preference of ready to cook foodproducts

36

4.8 A table and chart showing the cuisine preference of the respondents 374.9 A table and chart showing the respondents prefer to buy traditional

Indian food products as ready to cook food products38

4.10 A table and chart showing which ready to cook brand the respondentsprefer

39

4.11 A table and chart showing the respondents place of purchase ofready to cook products

40

4.12 A table and chart showing from where the respondents getinformation about ready to cook products

41

4.13 A table and chart showing the respondents response for current priceready to cook products

42

4.14 A table and chart showing which ready to cook products therespondents purchase often

43

4.15 A table and chart showing the respondents frequency of purchaseready to cook products

44

4.16 A table and chart showing the respondents feel that celebrityendorsement ready to cook products

45

4.17 A table and chart showing the respondents preference for other stockkeeping unit(SKU)

46

4.18 A table and chart showing the respondents purchase behaviour 474.19 A table and chart showing the respondents preference of another

brand of the product appears in the market48

4.20 A table and chart showing the important factors influcing thecustomer in buying ready to cook food products

49

EXECUTIVE SUMMARY

The Project “A STUDY ON ENTRY LEVEL MARKETING STRATEGY

FOR ITC TO ENTER RTC (Ready to cook) INDUSTRY” was done at ITC ltd.

Bangalore, with a view to find out the factors which a customer considers before

purchasing a ready to cook consumable product and also to achieve the objectives of

determining existing competitors strategy in ready to cook food industry.

Since RTC industry is still in infancy stage in India, ITC has no prior experience

in this industry. This project will help the company to design entry level marketing

strategy in RTC industry, with a view to give an edge over existing competitors in this

industry.

The research was restricted to only people within the age group of 18-45 since the

study mainly concentrates on this particular age group who are most likely to consume

ready to cook products and will form the major bulk of customers. The sample size was

100 respondents. Convenient sampling technique was carried out. The study is restricted

to Bangalore and was focused on only ID fresh.

Questionnaires and direct interviews were used to collect primary data. Likert

Scale was used to scale the responses. The Analytical Techniques used to analyse &

interpret data was Microsoft Excel.

The findings were that majority of the respondents were 18-45 years old and most

of the respondents used the brand ID fresh. The respondents considered price, quality,

availability, quantity offered in the package and freshness as important parameters. The

respondents considered the factors namely brand name, easy to cook and quality on a

very important factor/ parameter.

The major suggestions made to the company were that the advertisements &

promotional activities have to be aggressive in order to deal with existing competitors.

A STUDY ON ENTRY LEVEL MARKETING STRATEGY FOR ITC TO ENTER RTC (Ready to cook) INDUSTRY AT ITC.ltd

NEW HORIZON COLLEGE OF ENGINEERING Page 1

CHAPTER-I

INTRODUCTION

1.1 INTRODUCTION ABOUT THE INTERNSHIP

The Project titled “A STUDY ON ENTRY LEVEL MARKETING

STRATEGY FOR ITC TO ENTER RTC (Ready to cook) INDUSTRY” was done at

ITC ltd. Bangalore, with a view to find out the factors which a customer considers before

purchasing a ready to cook consumable product and also to achieve the objectives of

determining existing competitors strategy in ready to cook food industry.

Since ITC is entering a potentially new market, this project will help the

company to design entry level marketing strategy in RTC industry, with a view to give

an edge over existing competitors in this industry.

1.2 TOPIC

“A STUDY ON ENTRY LEVEL MARKETING STRATEGY FOR ITC TO

ENTER RTC (Ready to cook) INDUSTRY” at ITC ltd, Bangalore

1.3 NEED FOR THE STUDY

The study will collect data, responses & suggestions directly from the

respondents regarding various parameters/ attributes of the product (Price, Quality,

Taste, Nutritional value, Quantity and Availability).

This will help the company to analyse and understand the opportunities and

threats of Ready to cook industry from the customer’s as well as competitor’s

perspective, and help to develop a product which meets the customer’s requirements.

1.4 OBJECTIVES

To explore the new market and analyse opportunities/threats and determine

number of prospective customers.

To study the perception of ready to cook food industry.

To study the factors that affects the buying of ready to cook products.

To develop strategies for ITC to enter RTC (Ready to Cook) market.



1.5 SCOPE OF THE STUDY

The study will analyse the opportunities and threats existing in the market

The study will focus on only ID fresh as the main competitor

The study is restricted to Bangalore

The study will be limited only to people who fall under 18-45 years of age.

1.6 METHODOLOGY

Research Methodology:

Descriptive Research: A descriptive research methodology was adopted because

the objective of the study is to provide a systematic & factual description of the

level of satisfaction of the customers who may use RTC products. An

Experimental or Causal type of research cannot be done to achieve the objectives

of the study. A Descriptive research is best suited for this study.

Primary Data Collection:

Original data will be collected through questionnaires & through field research by

interviewing customers to meet the objectives of the study.

Sampling:

Sample Size: 100

Sampling Technique/ Methodology

Convenience Sampling: Convenience sampling was used because any person can

participate in the research study. Also because of the availability or the ease of access of

the respondents and the quickness with which the data can be gathered unlike other

sampling techniques.

Since the respondents were in the age group of 18 o 45 it will not be possible in a short

period to get all information about the elements in the population and create a sample

frame. Hence random sampling was not used.

Since very easily answerable questions were asked to collect the data there was no need

for any special knowledge to provide the data. Hence judgmental sampling was not used.

Likert Scale:

It is the most widely used approach to scaling responses in survey research, such

that the term is often used interchangeably with rating scale, or more accurately

the Likert-type scale, even though the two are not synonymous. The scale is

named after its inventor, Rensis Likert.



Analytical Techniques to be used:

Microsoft Excel

1.7 LIMITATIONS

Some of respondents may not reveal much information regarding their usage.

Convenience sampling may not give a sample which is a true representative of

the population

There may be bias in the response given

This research is limited due to time and resource constraints

1.8REVIEW OF LITERATURE

1. G.S. Dangayach and S.G. Deshmukh

Manufacturing strategy has attracted serious research attention in the recent past.

In this paper, an attempt is made to review the status of literature in manufacturing

strategy. A literature classification scheme is suggested. A total of 260 articles from 31

referred journals and international conferences are classified into content (manufacturing

capabilities, strategic choices, best practices, trans‐national comparison, literature survey,

and performance measurement) and process‐related issues. We have categorized the

methodology used in the literature into conceptual, descriptive, empirical, exploratory

cross‐sectional and exploratory longitudinal approaches. Based on this, some possible

research issues are also identified, viz., resource‐based operations strategy, sector

specific manufacturing strategy, relevance of manufacturing strategy to small and

medium enterprises, manufacturing strategy in the context of green manufacturing, effect

of organizational culture on formulation of manufacturing strategy, and performance

measurement.

2. Rosanna Garcia and Roger Calantone

A plethora of definitions for innovation types has resulted in an ambiguity in the way the

terms ‘innovation’ and ‘innovativeness’ are operational zed and utilized in the new

product development literature. The terms radical, really-new, incremental and

discontinuous are used ubiquitously to identify innovations. One must question, what is

the difference between these different classifications? To date consistent definitions for

these innovation types have not emerged from the new product research community. A

review of the literature from the marketing, engineering, and new product development



disciplines attempts to put some clarity and continuity to the use of these terms. This

review shows that it is important to consider both a marketing and technological

perspective as well as a macro level and micro level perspective when identifying

innovations. Additionally, it is shown when strict classifications from the extant

literature are applied, a significant shortfall appears in empirical work directed toward

radical and really new innovations. A method for classifying innovations is suggested so

that practitioners and academics can talk with a common understanding of how a specific

innovation type is identified and how the innovation process may be unique for that

particular innovation type. A recommended list of measures based on extant literature is

provided for future empirical research concerning technological innovations and

innovativeness.

3. Abbie Griffin and John R. Hauser

` During the past 20 years, numerous studies have explored the R&D—marketing

interface and its role in the new product development (NPD) process. Academics and

practitioners (including a PDMA task force) have examined commonly used measures of

success, the underlying reasons for the success or failure of NPD projects, and the effects

of R&D—marketing integration on both project- and company-level success. Does this

mean we have all the answers when it comes to ensuring the necessary level of

cooperation and interaction between R&D and marketing? Of course not.

Abbie Griffin and John R. Hauser note that prior research on R&D—marketing

integration is being reassessed in light of the movement toward flatter organizational

structures and cross-functional teams. To facilitate that reassessment, and to help guide

future research in this area, they review recent research on the methods employed for

integrating R&D and marketing, and they propose several hypotheses regarding those

methods. They present their review and hypotheses within the framework of a causal

map they have developed for studying functional integration.

4. B. Zafer Erdogan

Use of celebrities as part of marketing communications strategy is a fairly

common practice for major firms in supporting corporate or brand imagery. Firms invest

significant monies in juxtaposing brands and organizations with endorser qualities such

as attractiveness, likeability, and trustworthiness. They trust that these qualities operate

in a transferable way, and, will generate desirable campaign outcomes. But, at times,



celebrity qualities may be inappropriate, irrelevant, and undesirable. Thus, a major

question is: how can companies select and retain the 'right' celebrity among many

competing alternatives, and, simultaneously manage this resource, while avoiding

potential pitfalls? This paper seeks to explore variables, which may be considered in any

celebrity selection process by drawing together strands from various literatures.

5. Wolfgang Ulaga and Samir Chacour

Delivering superior value to customers is an ongoing concern of management in

many business markets of today. Knowing where value resides from the standpoint of the

customer has become critical for suppliers. In this article, the construct of customer-

perceived value is first assessed through a literature review. Then a multiple-item

measure of customer value is developed, and our approach is illustrated by the marketing

strategy development project of a major chemical manufacturer in international markets.

The article finally discusses how the customer value audit can be linked to marketing

strategy development and provides guidelines for managerial actions.



CHAPTER-2

INDUSTRY PROFILE

2.1 RTC INDUSTRY- INDIA

India has made lot of progress in agriculture & food sectors since independence

in terms of growth in output, yields and processing. It has gone through a green

revolution, a white revolution, a yellow revolution and a blue revolution. Today, India is

the largest producer of milk, fruits, cashew nuts, coconuts and tea in the world, the

second largest producer of wheat, vegetables, sugar and fish and the third largest

producer of tobacco and rice. Now the time is to provide better food processing & its

marketing infrastructure for Indian industries to serve good quality & safest processed

food like Ready to Cook food. It is opening a new window in world scenario as far as

taste & acceptance is concerned. The retort processed foods do not require rehydration or

cooking and can be consumed straight from the pouch with or without pre-warming,

depending upon the requirement of the users and the weather conditions. Today, almost

all companies in food processing sector using "Retort Technology" developed by

Defence Food Research Laboratory (DRFL).

The Indian Ready to Cook (RTC) food segment has emerged from its early days

of being a fringe alternative to home cooked meal or to eating out. A fast-paced urban

lifestyle, increasing prevalence of nuclear family structure, rising disposable income,

increasingly larger number of globe-trotting Indians with an experimentative palate are

all favourable demographic factors spurring the adoption of RTC foods in India. Further,

the growth of modern retail has provided unprecedented brand and category visibility to

convenience foods. Also, technological advancements in packaging and flavour science

have brought RTC foods centre-stage among urban Indians. In RTC segments and

specifically in pasta, vermicelli and instant mix categories, the competitive landscape is

largely dominated.



1280

500

1000

1500

2000

2500

3000

3500

2006

RTC Market In India

RTC Market InIndia

72

28

Bachelors

Prefer RTC



128

2900

2006 2015

RTC Market In India

RTC Market InIndia

6733

WorkingWomen

Prefer RTC



86

14Households

Prefer RTC



COMPANY PROFILE

2.2 ABOUT COMPANY:

ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal.

ITC Limited completed 100 years on 24 August 2010.

Its diversified business includes five segments: FMCG, Hotels, Paperboards, Paper &

Packaging and Agri Business. In 2012-13, the company had an annual turnover of US$

8.31 billion and a market capitalisation of US$ 45 billion. It employs over 25,000 people

at more than 60 locations across India and is part of Forbes 2000 list.

ITC claims that it is the only company in the world of comparable dimensions to be

Carbon Positive, Water Positive and Solid Waste Recycling Positive.

ITC was formed on 24 August 1910 under the name Imperial Tobacco Company of India

Limited. Later the name was changed to India Tobacco Company Limited in 1970 and

then to I.T.C. Limited in 1974. Finally, the company changed its name to 'ITC Limited'

on September 2001.

The earlier decades of the company's activities centred around the tobacco industry.

Since 1964 conclusive epidemiological evidence of the deadly effects of tobacco

consumption has led to a sharp decline in official support for producers and

manufacturers of tobacco, in spite of its large contribution to the agricultural, fiscal,

manufacturing and exporting sectors of the economy.

Viewing the changes in the business dynamics in the tobacco industry, the company

starting looking to other venues for earning revenue. In 1970s, it started to enter non-

tobacco businesses and in the same period it started reducing the foreign equity holding

in the company to 40%.

Today ITC is the country's leading FMCG marketer, the clear market leader in the Indian

Paperboard and Packaging industry, a globally acknowledged pioneer in farmer

empowerment through its wide-reaching Agri Business, the second largest Hotel Chain

in India and a trailblazer in 'green hoteliering'



ITC InfoTech, a wholly-owned subsidiary, is one of India's fast-growing IT companies in

the mid-tier segment. ITC's Agri-Business is one of India's largest exporters of

agricultural products. The ITC group's contribution to foreign exchange earnings over

the last ten years amounted to nearly US$ 5.4 billion, of which agri exports constituted

56%. The Company's 'e-Choupal' initiative has enabled Indian agriculture significantly

enhance its competitiveness by empowering Indian farmers through the power of the

Internet.

2.3 PRODUCTS PORTFOLIO

Tobacco products

Cigarettes: In 2012-13, ITC earned revenue of Rs. 27,136 Crores from the

business of Cigarettes (56% of total revenue). In the same year, this segment

contributed to profits of Rs. 8,694 Crores (82% of total profits). ITC Ltd sells

80% of the cigarettes in the India, where 275 million people use tobacco

products.

Its major cigarette brands are W.D. & H.O. Wills, Gold Flake Kings, Gold Flake

Premium, Gold Flake Super Star, Navy Cut, Insignia, India Kings, Classic

(Verve, Menthol, Menthol Rush, Regular, Citric Twist, Mild & Ultra Mild),555,

Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players, Flake and

Duke & Royal



Other businesses

Foods: ITC is India's largest seller of branded foods with sales of over Rs. 4,600

Crores in 2012-13. It is present in 4 categories in Foods business: Staples, Snack

Foods, Ready to Eat Foods and Confectionery. Its major food brands are: Kitchens

of India, Aashirvad aata, Mint-o, Sun feast Biscuits & Pasta, Candy man toffees,

Bingo chips, Yippee noodles.

Lifestyle Apparel: Wills Lifestyle and John Players brands. Wills Lifestyle was

accorded the, Super brand status and John Players was included in the top 10 Most

Trusted Apparel Brands 2012‟ by The Economic Times.



Personal Care: (Fiama Di Wills, Vivel, Superia, Essenza Di Wills and Engage

brands in perfumes

Stationery: Classmate, Paper Kraft and Colour Crew brands. Launched in 2003,

Classmate became the largest notebook brand in India in 200



Safety Matches and Agarbattis: Ship, iKno and Aim brands of matches;

Mangaldeep Incense Sticks (agarbattis).

InfoTech ITC InfoTech is IT Services Company incorporated in the year 2000.

Headquartered in Bangalore, India. The Company is a fully owned subsidiary

of ITC Limited. The company has a service delivery footprint across more than

140 countries worldwide, and offers end-to-end solutions through dedicated

development centres offices and delivery centres in North

America, Europe and Asia Pacific, in addition to hubs based in Bangalore, Pune,

Trivandrum, and Kolkata.



Hotels: ITC's hotels (under brands including Welcome Hotel) have evolved into

being India's second largest hotel chain with over 90 hotels throughout India. ITC is

also the exclusive franchise in India of two brands owned by Sheraton International

Inc.-The Luxury Collection and Sheraton which ITC uses in association with its own

brands in the luxury 5 star segment. Brands in the hospitality sector owned and

operated by its subsidiaries include Fortune Park Hotels and Welcome Heritage

Hotels.

Paperboard, Specialty Paper, Graphic and other Paper.

Packaging and Printing for diverse international and Indian clientele.



e-Choupal

ITC's Agri Business Division, one of India's largest exporters of agricultural commodities,

has conceived e-Choupal as a more efficient supply chain aimed at delivering value to its

customers around the world on a sustainable basis.

The e-Choupal model has been specifically designed to tackle the challenges posed by the

unique features of Indian agriculture, characterized by fragmented farms, weak

infrastructure and the involvement of numerous intermediaries, among others.



2.4 VISION

Sustain ITC’s position as one of India’s most valuable corporations through world class

performance, creating growing value for the Indian economy and the Company’s stakeholders

2.5 MISSION

To enhance the wealth generating capability of the enterprise in a globalizing environment,

delivering superior and sustainable stakeholder value

2.6 CORE VALUES

ITC’s core values are aimed at developing a customer focused, high performance organization

which creates values for its stakeholders



SHAREHOLDING AND LISTINGS

ITC's equity shares are listed on Bombay Stock Exchange, National Stock Exchange of

India and Calcutta Stock Exchange. The company's Global Depository Receipts(GDRs)

are listed on the Luxembourg Stock Exchange.

SHAREHOLDERS (AS ON 31-MARCH-2014) SHAREHOLDING

Foreign companies (mainly British American Tobacco Company) 30.54%

Foreign Institutional Investors (FII) 19.68%

Banks, Financial Institutions, Insurance Companies and Mutual Funds 33.44%

Bodies Corporate 04.91%

Public and Others 11.13%

GDRs 00.30%

Total 100.00%



GOVERNANCE STRUCTURE

Board of Directors:

Comprising executive (4) and non- executive directors (11) Strategic supervision

Corporate Management Committee:

Comprising executive directors and senior managers Strategic Management

Divisional Chief Executive & Divisional Management Committee:

Executive Management

2.7 AREAS OF OPERATION:

ITC is a Pan India company operating throughout the 29 states & 7 union

territories. It is present in major Indian cities like: Kolkata, Delhi, Mumbai,

Bangalore, Chennai etc.

Globally ITC is present in countries like: Russia, USA, UAE,

Australia, New Zealand etc.

2.8 INFRASTRUCTURAL FACILITIES:

ITC has infrastructural facilities which can be compared or match with the best in the

World. The company’s head office and other branches offer these facilities:

Fully furnished conference rooms with all latest equipment

High Bandwidth Internet Connectivity

Good lighting and ventilation

Multiple Time Zone Support

Electronic Project Updates and Status Reports

Latest Tele / Video Conferencing Equipment

Latest R&D equipment and facilities in the laboratories

Highly networked information system

Fire Prevention and Protection Measures

Good and comfortable seating arrangements for the employees

Fully air conditioned premise

Provides good ambience to the customers and the clients who visit the branch



2.9 COMPETITORS INFORMATION:

If ITC enters ready to cook food industry the major competitor

ID fresh foods

ID fresh Foods Product Portfolio





ID fresh foods






ID fresh foods




2.10 SWOT ANALYSIS OF ITC LIMITED

STRENGTHS:

ITC has a strong and experienced management

Wealth of local knowledge & International expertise helps it to be globally

competitive

Managing diverse businesses, ITC has 105 subsidiaries connected with its

various operations

Strong brand presence, excellent products advertising

Diversified product and services portfolio which includes FMCG, Hotel chains,

paper & packaging and agri-business

Over 6500 E-Choupal CSR activities and sustainability initiatives enhance ITC‟s

brand image reaching over 4 million farmers

ITC limited has over 25,000 employees

Excellent Distribution network

Excellent research and development facilities

WEAKNESS:

ITC is still hugely dependent on its tobacco revenues

Diversification into various lines in which it does not have much knowledge

would be very risky proposition

Hotel industry has not been able to create a huge market share



OPPORTUNITIES:

The market is always open for innovation

Mergers and acquisitions to strengthen the brand

Big untapped market available for FMCG, cigarettes, hotels , IT, retail garment,

packaging & agricultural products

Good source of revenue & foreign exchange available by way of exports of

agricultural products , hotels & cigarettes

Proper publicity of the hotels would increase its brand image & revenue

Increasing purchasing power of people thereby increasing demand

THREATS:

Negative publicity for smoking could affect its cigarette segment

Government is under huge pressure from public organizations for banning

tobacco products which could affect it adversely

High competition from established brands

Competition from unbranded products

Poor monsoon leads to poor agricultural growth which would affect the agri-

exports

FDI in retail thereby allowing international brands

People have cheaper substitutes to the products



2.11 FUTURE GROWTH AND PROSPECTS:

Diversified conglomerate ITC Limited plans to invest about Rs 25,000 Crores in

the next 5-7 in various projects.

The company is also working towards entering the nutrition, health and well-

being segment. ITC is making an audacious campaign to build Indian brands.

ITC's growing presence in agriculture, food and personal care products is

enabling a synergy of R&D capabilities to deliver future products aimed at

nutrition, health and well-being. ITC would attempt to address problems of

cardio- vascular health cognition and diabetes.

ITC recognises special attention needed to tackle common health disorders in the

country, several long term research platforms had been designed to create unique

interventions.

Aiming to become the number one FMCG player in the country (barring

cigarettes), the company is eyeing a top line of around Rs 15,000 crore over the

next five to seven years from this new line of business.

ITC's segment revenue from non-cigarette FMCG business had already crossed

Rs 5500 crore.

Wimco, which was acquired by the company in 2005, the land of the closed

factories at Maharashtra and Chennai would be utilised by converting them into

food parks.

On export of food products by ITC, 'Aashirwaad' brand atta is planned to being

exported to New Zealand, Australia, US and Canada. But the government had

imposed restrictions on such exports for ensuring food security in wheat-based

products

The company had suggested that value-added exports of food products should

never be stopped but can come with some obligation imposed on the company to

import equivalent amount of wheat into the country. The suggestion was

receiving a favourable attention from the government.

The Nepal subsidiary was the number one company in that country in terms of

size and employees & is prospective for further growth.

(Source: ITC’s Chairman Y.C. Deveshwar, at the 101st Annual General Meeting

on 27th July, 2012 & at the 102nd Annual General Meeting on 26th July, 2013)



ANALYSIS OF FINANCIAL STATEMENTS

BALANCE SHEET

Consolidated Balance Sheet as at 31st March, 2014

As at As at

Note 31st March, 2014 31st March, 2013

(` in Crores)

(` in

Crores)

EQUITY AND LIABILITIES

Shareholders’ funds

Share capital 1 795.32 790.18

Reserves and surplus 2

26441.

64 27236.96

22367.

72 23157.90

Minority interests 203.03 179.89

Non-current liabilities

Long-term borrowings 3 76.40 90.80

Deferred tax liabilities (Net) 4A

1306.9

9

1213.5

9

Other Long term liabilities 5 42.74 40.47

Long-term provisions 6 131.75 1557.88 144.75 1489.61

Current liabilities

Short-term borrowings 7 150.24 –

Trade payables

2106.2

5

1771.5

6

[Includes share of Joint Ventures

` 30.36 Crores (2013 - ` 23.94

Crores)]

Other current liabilities 8

3673.1

0

3560.0

3

Short-term provisions 9

5956.4

7 11886.06

5194.3

9 10525.98

TOTAL 40883.93 35353.38



ASSETS

Non-current assets

Fixed assets 10

Tangible assets

12556.

00

11728.

45

Intangible assets 73.83 100.54

Capital work-in-progress - Tangible

assets

3081.2

9

2041.3

7

Intangible assets under development 36.08 20.66

15747.

20

13891.

02

Less: Provision for assets given on

lease 5.67 5.67

15741.

53

13885.

35

Goodwill on consolidation 297.14 316.51

Non-current investments 11 798.52 814.17

Deferred tax assets (Net) 4B 35.52 24.11

Long-term loans and advances 12

1428.9

2

1246.3

0

Other non-current assets 12A 1.24 18302.87 1.24 16287.68

Current assets

Current investments 13

6485.5

0

5167.1

1

Inventories 14

8255.2

4

7522.0

9

Trade receivables 15

2439.2

1

1395.7

6

Cash and bank balances 16

3490.1

9

3828.3

0

Short-term loans and advances 17 816.20 529.61



PROFIT AND LOSS

Consolidated Statement of Profit and Loss for the year ended 31st March, 2014

Other current assets 18

1094.7

2 22581.06 622.83 19065.70

TOTAL 40883.93 35353.38

Note

For the year

ended For the year ended

31st March, 2014 31st March, 2013

(` in Crores) (` in Crores)

Gross Income 19 50550.61 45102.45

Gross Revenue from sale of products and services 49247.28 43920.76

Less: Excise Duty 14262.58 12597.31

Net Revenue from sale of products and services 34984.70 31323.45

Other operating revenue 332.38 304.09

Revenue from operations 20 35317.08 31627.54

Other income 21 970.95 877.60

Total Revenue 36288.03 32505.14

Expenses

Cost of materials consumed 10376.05 9069.82


` 108.30 Crores (2013 - ` 83.62 Crores)]

Purchases of Stock-in-Trade 2976.98 3305.23

Changes in inventories of finished goods,

work-in-progress, Stock-in-Trade and

Intermediates 22 (112.74) (256.84)

Employee benefits expense 23 2504.24 2145.63

Finance costs 24 6.37 87.18

Depreciation and amortisation expense 964.92 859.11




` 1.91 Crores (2013 - ` 1.45 Crores)]

Other expenses 25 6520.66 6189.36

Total Expenses 23236.48 21399.49

Profit before tax 13051.55 11105.65

Tax expense:

Current tax 26 3988.87 3088.05

Deferred tax 27 72.06 324.02

Profit after tax before share of results of

associates and

minority interests 8990.62 7693.58

Less: Minority interests 109.81 96.38

Share of net profit of associates 10.57 10.87

Profit for the year 8891.38 7608.07

Earnings per share (Face Value ` 1.00 each) 28 (i)

Basic ` 11.22 ` 9.69

Diluted ` 11.09 ` 9.56



CHAPTER 3

THEORETICAL BACKGROUND OF STUDY

3.1STRATEGY:

A strategy is defined as, a unified, comprehensive, and integrated plan that relates to the

strategic advantages of the firm to the challenges of the environment. It is designed to ensure

that the basic objectives of the enterprise are achieved through proper execution by the

organization.

3.2MARKETING STRATEGY:

Marketing strategy is the goal of increasing sales and achieving a sustainable competitive

advantage. Marketing strategy includes all basic and long-term activities in the field of

marketing that deal with the analysis of the strategic initial situation of a company and the

formulation, evaluation and selection of market-oriented strategies and therefore contributes

to the goals of the company and its marketing objectives.

3.3 MARKET ENTRY STRATEGY:

A market entry strategy s planned method of delivering goods or services to a new target

market and distributing them there.

Michael Porter’s three generic strategies



CHAPTER 3


3.1STRATEGY:




organization.













CHAPTER 3


3.1STRATEGY:




organization.













Porter wrote in 1980 that strategy target either cost leadership, differentiation, or focus. These

are known as Porter's three generic strategies and can be applied to any size or form of

business. Porter claimed that a company must only choose one of the three or risk that the

business would waste precious resources. Porter's generic strategies detail the interaction

between cost minimization strategies, product differentiation strategies, and market focus

strategies.

1. Cost Leadership strategy: Organizations compete for a wide customer based on

price. Price is based on internal efficiency in order to have a margin that will sustain

above average returns and cost to the customer so that customers will purchase your

product/service. Works well when product/service is standardized can have generic

goods that are acceptable to many customers, and can offer the lowest price.

Continuous efforts to lower costs relative to competitors are necessary in order to

successfully be a cost leader.

2. Differentiation strategy: Value is provided to customers through unique features

and characteristics of an organization's products rather than by the lowest price. This

is done through high quality, features, high customer service, rapid product

innovation, advanced technological features, image management, etc.

3. Focus Strategy: This dimension is not a separate strategy for big companies due to

small market conditions. Big companies which chose applying differentiation

strategies may also choose to apply in conjunction with focus strategies (either cost or

differentiation). On the other hand this is definitely appropriate strategies for small

companies especially for those wanting to avoid competition with big ones. In

adopting a narrow focus, the company ideally focuses on a few target markets also

called a segmentation strategy or niche strategy.



3.4 PORTERS FIVE FORCE ANALYSIS

Five forces:

Threats of new entrants

Threat of substitute products or services

Bargaining power of customers (buyers)

Bargaining power of suppliers

Intensity of competitive rivalry




Five forces:









Five forces:








3.5 STRATEGIES FOR ENTERING NEW BUSINESS

Merger Strategy

Acquisitions Strategy

Joint Ventures

Diversification

Forward Integration

Merger strategy: Many firms prefer to enter new business through mergers. Combination

of two or more firms is known as merger. When the firms of similar objectives and similar

strategies combine into one firm, such combinations are called mergers

Acquisition strategy: Sometimes want to enter a new business through the strategy of

acquisition. Acquisition is defined as, “The attempt of one firm to acquire ownership or

control over another firm against the wishes of the latter’s management.

Joint Ventures: Joint venture are partnership in which two or more firms carry out a

specific project or corporate in a selected areas of business. Joint ventures can be temporary;

disbanding after the project is finished or long term. Ownership of the firms remains

unchanged.

Diversification: Diversification can be related or unrelated. It becomes an attractive

strategy when a company runs out of profitable growth opportunities in its core business. The

purpose of diversification is to build shareholder value. Diversification builds shareholder

value when a diversified group of businesses can perform better under the auspices of a

single corporate parent then they would as independent, stand alone businesses.

Forward integration: Forward vertical integration occurs when the firms acquire or

create the company that purchases its products or services. Many firms start their operation in

a limited fashion, and later expand them vertically, when they accumulate enough financial

resources.



CHAPTER-4

ANALYSIS AND INTERPRETATION

TABLE.4.1 SHOWING THE AGE GROUP FOR THE RESPONDENTS

SL. NO. Age No. of Respondents %

1 18 to 25 11 11

2 25 to 30 35 35

3 30 to 45 33 33

4 45 and above 21 21

Total 100 100%

Source: Primary Data

ANALYSIS: Table 4.1 shows the age group of the respondents. From the table it can be

said that 11% of the customers lie under the age group of 18-25, 35% of them lie under 25-

30, 33% lie under 30-45 and 21% lies under 45 and above.

CHART4.1.1DISPLAYING THE AGE GROUP OF THE RESPONDENTS

Source: Table No.4.1

INTERPRETATION:

From the above chart 4.1.1 majority of the respondents lie under the age group of 30-45 and

just 11 % of respondents lie under the age group of 18-25.

11%

35%33%

21%

Age

18 to 25

25 to 30

30 to 45

45 and above



TABLE 4.2 SHOWING THE GENDER FOR THE RESPONDENTS


ANALYSIS: Table 4.2 shows the gender of the respondents. From the table it can be said

that 63% of the customers are female and 37% of them are male.

CHART 4.2.1- DISPLAYING THE GENDER OF THE RESPONDENTS


INTERPRETATION:

From the above chart 4.2.1 majority of the respondents are female of 63% and 37% of

respondents are male.

SL. NO. Gender No. of Respondents %

1 Male 37 37

2 Female 63 63

Total 100 100%

37%

63%

Gender

Male

Female



TABLE 4.3 SHOWING THE EDUCATIONAL QUALIFICATION OF

THE RESPONDENTS


ANALYSIS: Table 4.3 shows the education qualification of the respondents. From the

table it can be said that 58% of the customers are undergraduates, 23% of them are

postgraduates, 16% are other studies, and only 3% of them are PUC.

CHART 4.3.1- DISPLAYING THE EDUCATIONAL QUALIFICATION

OF THE RESPONDENTS


INTERPRETATION:

From the above chart 4.3.1 majority of the respondents of 58% of the customers are

undergraduates, 23% of them are postgraduates, 16% are other studies, and only 3% of them

are PUC.

SL. NO. Educational

Qualification

No. of Respondents %

1 PUC 03 03

2 UG 58 58

3 PG 23 23

4 Other 16 16

Total 100 100%

3%

58%23%

16%

Educational qualification

PUCUGPGother



TABLE 4.4 SHOWING THE OCCUPATION OF THE RESPONDENTS

SL. NO. Occupation No. of Respondents %

1 Student 11 11

2 Employee 57 57

3 Self Employee 11 11

4 Other 21 21

Total 100 100%


ANALYSIS: Table 4.4 shows the occupation of the respondents. From the table it can be

said that 57% of the respondents are employees, 21% of them are others,11% them are

student, and the other 11% are them are self employee

CHART4.4.1-DISPLAYING THE OCCUPATION OF THE

RESPONDENTS


INTERPRETATION:

From the above chart 4.4.1 majority of the respondents of 57% are employees, 21% of them

are others,11% them are student, and the other 11% are self employee.

11%

57%

11%

21%

Occupation

Student

Employee

Self Employee

Other



TABLE 4.5 SHOWING THE INCOME OF THE RESPONDENTS

SL. NO. Income No. of Respondents %

1 10000 to 15000 24 24

2 15000 to 25000 26 26

3 25000 to 30000 32 32

4 30000 and above 18 18

Total 100 100%


ANALYSIS: Table 4.5 shows the income of the respondents. From the table it can be said

that 32% of the respondents are getting the income between 25000 to 30000, 26% of them are

getting the income between 15000 to 25000 , 24% them are getting the income between

10000 to 15000, and the other 18% of them are getting the income of 30000 and above.

CHART 4.5.1- DISPLAYING THE INCOME OF THE RESPONDENTS


INTERPRETATION: From the above chart 4.5.1 majority of the respondents of 32%

are the respondents are getting the income between 25000 to 30000, 26% of them are getting

the income between 15000 to 25000 ,24% them are getting the income between 10000 to

15000, and the other 18% are them are getting the income of 30000 and above.

24%

26%32%

18%

Income

10000 to 15000

15000 to 25000

25000 to 30000

30000 and above



TABLE 4.6 SHOWING THE AWARENESS OF READY TO COOK

FOOD PRODUCTS

SL. NO. Awareness No. of Respondents %

1 Yes 100 100

2 No 0 0

Total 100 100%


ANALYSIS:

Table 4.6 shows 100% of the respondents are aware of ready to cook food products.

CHART 4.6.1- DISPLAYING THE AWARENESS OF READY TO COOK

FOOD PRODUCTS


INTERPRETATION:

From the above chart 4.6.1 100% of the respondents are aware of ready to cook food

products.




FOOD PRODUCTS


1 Yes 100 100

2 No 0 0

Total 100 100%


ANALYSIS:



FOOD PRODUCTS


INTERPRETATION:


products.

100%

0%Awareness




FOOD PRODUCTS


1 Yes 100 100

2 No 0 0

Total 100 100%


ANALYSIS:



FOOD PRODUCTS


INTERPRETATION:


products.

Yes

No



TABLE 4.7SHOWING THE PREFERENCE OF READY TO COOK

FOOD PRODUCTS


ANALYSIS:

Table 4.7 shows the respondents of 54% prefer for convenience, 24% of them prefer for taste

and 22% of them prefer for nutrition.

CHART 4.7.1- DISPLAYING THE PREFERENCE OF READY TO

COOK FOOD PRODUCTS


INTERPRETATION:

From the above chart 4.7.1 majority of the respondents of 54% prefer for convenience, 24%

of them prefer for taste and 22% of them prefer for nutrition.

SL. NO. Preference No. of Respondents %

1 Taste 24 24

2 Nutrition 22 22

3 Convenience 54 54

4 Other 0 0

Total 100 100%

24%

22%54%

0%

Preference

Taste

Nutrition

Convenience

Other



TABLE 4.8 SHOWING THE CUISINE PREFERENCE OF THE

RESPONDENTS

SL. NO. Cuisine No. of Respondents %

1 Indian 79 79

2 Chinese 12 12

3 Italian 5 5

4 Mexican 4 4

Total 100 100%


ANALYSIS:

Table 4.8 shows the respondents of cuisine preference where 79% prefer Indian foods, 12%

prefer Chinese food, 5% prefer Italian food and remaining 4% prefer Mexican.

CHART 4.8.1- DISPLAYING THE CUISINE PREFERENCE OF THE

RESPONDENTS


INTERPRETATION:

From the above chart 4.8.1 majority of the respondents of cuisine preference where 79%

prefer Indian, 12% prefer Chinese, 5% prefer Italian and 4% prefer Mexican.

79%

12%

5% 4%

Cuisine

Indian

Chinese

Italian

mexican



TABLE 4.9 SHOWING THE RESPONDENTS PREFER TO BUY TRADITIONAL

INDIAN FOOD PRODUCTS AS READY TO COOK FOOD PRODUCTS


ANALYSIS:

Table 4.9 shows the respondents of 81% of them prefer buy traditional Indian food products

as ready to cook products, rest 19% do not prefer

Chart4.9.1-displaying the respondents prefer to buy traditional indian food products


INTERPRETATION:

From the above chart 4.9.1 majority of the respondents of 81% of them buy traditional Indian

food products as ready to cook products, rest 19% do not prefer.

SL. NO. Traditional Indian

food


1 Yes 81 81

2 No 19 19

Total 100 100%

81%

19%

Tradiational Indian Food

Yes

No



Table 4.10 showing which ready to cook brand the respondents prefer

SL. NO. Brand No. of Respondents %

1 ID fresh 63 63

2 MTR 25 25

3 Knorr 12 12

Total 100 100%


ANALYSIS:

Table 4.10 shows the respondents of 63% of them buy ID fresh brand, 25% of them buy

MTR and 12% of them buy Knorr.

Chart 4.10.1- Displaying which ready to cook brand the respondents prefer


INTERPRETATION:

From the above chart 4.10.1 shows majority of the respondents of 63% of them buy ID fresh,

25% of them buy MTR and 12% of them buy Knorr.

63%

25%

12%

Brand

ID fresf

MTR

Knorr



Table4.11 showing the respondent’s place of purchase of ready to cook products

SL. NO. Place of purchase No. of Respondents %

1 Grocery 18 18

2 Convenient store 14 14

3 Super market 62 62

4 Other 6 6

Total 100 100%


ANALYSIS:

Table 4.11 shows the respondents of 62% of them buy the ready cook product from super

market, 18% from grocery, 14% of them buy from convenient store and remaining 6% of

them buy from the other place.

Chart 4.11.1- Displaying the respondent’s place of purchase of ready to cook products


INTERPRETATION:

From the above chart 4.11.1 shows majority of the respondents of 62% of them buy ready to

cook product from super market, 18% from grocery, 14% of those buy from convenient store

and 6% of them buy from the other place.

18%

14%

62%

6%

Place of purchase

Grocery

Convenient store

Super market

Other



Table4.12 showing from where the respondents get information about ready to cook

products

SL. NO. Information No. of Respondents %

1 Newspaper/Magazine 27 27

2 Internet/Online 11 11

3 Television 37 37

4 Friends/Neighbours 25 25

5 Radio/FM 0 0

Total 100 100%


ANALYSIS: Table 4.12 shows the respondents of 37% of them get information about ready

to cook product from television, 27% of them get from newspaper/magazine, 25% of them

get the information through friends/neighbours and 11% get from internet/online.

Chart 4.12.1- Displaying from where the respondents get information about ready to

cook products


INTERPRETATION:

From the above chart 4.12.1 shows majority of the respondents of 37% of them get

information about ready to cook product from the television, 27% of them get from

newspaper/magazine, 25% get the information from friends/neighbours and 11% get from

internet/online.

27%

11%

37%

25%

0%

Information

Newspaper/Magazine

Internet/Online

Television

Friends/Neighbours

Radio/FM



Table 4.13showing the respondent’s response for current price ready to cook products

SL. NO. Price justified? No. of Respondents %

1 Yes 83 83

2 No 17 17

Total 100 100%


ANALYSIS:

Table 4.13 shows the respondents of 83% of them agree with current price of ready to cook

products and 17% of them are do not agree.

Chart 4.13.1- Displaying the respondent’s response for current price ready to cookproducts


INTERPRETATION:

From the above chart 4.13.1 shows majority of the respondents of 83% of them agree with

the current price and 17% of them do not agree.

83%

17%

Price justified

Yes

No



Table 4.14showing which ready to cook products the respondents purchase often

SL. NO. Purchase often No. of Respondents %

1 Idly/Dosa Batter 37 37

2 Parota 18 18

3 Chapatti 21 21

4 Instant Mix 24 24

Total 100 100%


ANALYSIS:

Table 4.14 shows the respondents of 37% of them purchase idly/dosa batter, 24% purchase

instant mix, 21% of them purchase chapatti and 18% purchase parota.

Chart 4.14.1- Displaying which ready to cook products the respondents purchase often


INTERPRETATION:

From the above chart 4.14.1 shows majority of the respondents 37% of them purchase

idly/dosa batter, 24% purchase instant mix, 21% of them purchase chapatti and 18% purchase

parota

37%

18%

21%

24%

Purchase often

Idly/Dosa Batter

Parota

Chapatti

Instant Mix



Table4.15 showing the respondent’s frequency of purchase of ready to cook product

SL. NO. Frequency of

purchase


1 Daily 44 44

2 Weekly 31 31

3 Fortnightly 14 14

4 Monthly 11 11

Total 100 100%


ANALYSIS:

Table 4.15 shows the respondents of 44% of them purchase daily, 31% purchase weekly,

14% purchase fortnightly and 11% purchase monthly.

Chart 4.15.1- Displaying the respondent’s frequency of purchase of ready to cookproduct


INTERPRETATION:

From the above chart 4.14.1 shows majority of the respondents of 44% of them purchase

products daily, 31% purchase products weekly, 14% purchase fortnightly and 11% purchase

monthly.

44%

31%

14%

11%

Frequency of purchase

Daily

Weekly

Fortnightly

Monthly



Table4.16 showing the respondents feel that celebrity endorsement affects buying

decision

SL. NO. Celebrity

endorsement


1 Yes 71 71

2 No 29 29

Total 100 100%


ANALYSIS:

Table 4.16 shows the respondents of 71% of them feel that celebrity endorsement affects the

buying decision and 29% are do not feel that celebrity endorsement affects the buying

decision.

Chart 4.16.1- Displaying the respondents feel that celebrity endorsement affects buying

decision


INTERPRETATION:

From the above chart 4.16.1 shows majority of the respondents 71% of them feel that

celebrity endorsement affects the buying decision and 29% do not feel that celebrity

endorsement affects the buying decision.

71%

29%

Celebrity Endorsement

Yes

NO



Table 4.17showing the respondent’s preference for other stock keeping unit (SKU)

SL. NO. Stock keeping

unit(SKU)


1 ½ Kg 22 22

2 3 Kg 47 47

3 5 Kg 31 31

Total 100 100%


ANALYSIS:

Table 4.17 shows the respondents of 47% of them prefer3kg (SKU), 31% of them prefer 5kg

(SKU) and 22% of them prefer 1/2kg (SKU).

Chart 4.17.1- Displaying the respondent’s preference for other stock keeping unit(SKU)


INTERPRETATION:

From the above chart 4.17.1 shows majority of the respondents of 47% of them prefer 3kg

(SKU), 31% of them prefer 5kg (SKU) and 22% prefer 1/2kg (SKU).

22%

47%

31%

Stock keeping unit(SKU)

1/2 Kg

3 Kg

5 Kg



Table4.18 showing the respondents purchase behaviour

SL. NO. Purchase behaviour No. of Respondents %

1 Postpone your

purchase

9 9

2 Switch over to other

brand

25 25

3 Go to other shop to

search for preferred

brand

55 55

4 Do not buy 11 11

Total 100 100%


ANALYSIS:

Table 4.18 shows the respondents of 55% go to other shop to search for preferred brand, 25%

switch over to other brand, 11% do not buy and 9% postpone the purchase.

Chart 4.18.1- Displaying the respondents purchase behaviour


INTERPRETATION:

From the above chart 4.18.1 shows majority of the respondents 55% go to other shop to

search for preferred brand, 25% switch over to other brand, 11% do not buy and 9% postpone

the purchase.

9%

25%

55%

11%

Purchase behaviour

Postpone your purchase

Switch over to other brand

Go to other shop to search forpreferred brand

Do not buy



Table4.19 showing the respondent’s preference of another brand of the same product

appears in the market

SL. NO. New brand No. of Respondents %

1 No, not at all 23 23

2 I may consider 47 47

3 Can’t say 31 31

Total 100 100%


ANALYSIS:

Table 4.19 shows the respondents of 47% are to be consider, 31% can’t say and 23% not at

all consider the product.

Chart 4.19.1- Displaying the respondent’s preference of another brand of the sameproduct appears in the market


INTERPRETATION:

From the above chart 4.19.1 shows majority of the respondents 47% are to be consider, 31%

can’t say and 23% not at all consider the product.

23%

47%

31%

New brand

No, not at all

I may consider

Can't say



TABLE 4.20 IMPORTANT FACTORS INFLUENCING THE CUSTOMER IN

BUYING READY TO COOK FOOD PRODUCTS

Factors Mean SD Range

Price 3.81 1.12 2.69 <= Mean <= 4.93

Quality 4.8 0.47 4.33 <= Mean <= 5.27

Availability 4.54 0.8 3.74 <= Mean <= 5.34

Freshness 4.82 0.48 4.34 <= Mean <= 5.3

Packaging 4.6 0.71 3.89 <= Mean <= 5.31

Brand 4.91 0.29 4.62 <= Mean <= 5.2

Advertisement 4.44 0.94 3.5 <= Mean <= 5.38

Easy to Cook 4.88 0.35 4.53 <= Mean <= 5.23


INTERPRETATION:

To ascertain the prominent factor that makes the customers to purchase, mean and standard

deviation is computed. The values of mean and standard deviation have given an idea of

factors. On comparison of means, Brand name (Maximum Mean 4.91) is important followed

by Easy to cook (Mean 4.88). It is surprising that, price is not the factor to make customer to

buy.

In terms of SD also, the similar factor are getting listed. That is, Brand Name, Easy to Cook,

Freshness etc. At last, Price is having Maximum SD.

Range for the respective factors gives an idea of Responses in large Scale Survey. One can

understand and interpret the same depending on the requirement of decision.



CHAPTER-5

FINDINGS, CONCLUSION AND SUGGESTIONS

5.1FINDINGS

The study has taken into consideration of respondent’s majority of female respondents

in age group of 25-30 with small portion under the age group of 18-25. As most of the

respondents around 58% of undergraduates, 23% of postgraduates the study has vast

coverage of educated respondents.

In terms of Occupational distribution, around 57% of respondents are employees. At

the same time 11% of them are self employed. Hence, purchasing capacity of

respondents is recorded well 32%respondnets are having income between 25000 to

30000, 26% of them are getting the income between 15000 to 25000 ,24% them are

getting the income between 10000 to 15000, and the other 18% are them are getting

the income of 30000 and above.

The question of “Do you Aware of Ready Cook Food” has surprisingly given positive

response almost for 100%. This may be due to the fact that the changes in the life

style of respondents group. Majority of the respondents, top the level of 54% prefer

for convenience, 24% of them prefer for taste. It is to be observed and surprising that

only 22% of them prefer for nutrition.

Around 79% of respondents have preferred Indian style. This witnesses that still our

culture in terms of food preference is not influenced by the other cultural reasons.

Preference of ID Fresh is supported by 63% by leaving the next level of preference to

the competitor MTR Knorr.

Opinion on purchase place has given maximum preference to Super market (62%).

Preference to other places like grocery shops and convenient store has also recorded

considerable amount.

Awareness on Ready cook provision has been responded well through the choices of

television by 37%, newspaper/magazine by 27%, friends/neighbours by 25% and

Internet/Online by11% of respondents. Current price is acceptable by considerable

group of respondents of size (83%). Preference of the ready cook is opted for

idly/dosa batter (37%), instant mix (24%), chapatti (21%) and parota (18%).

It is obvious that due to perishable nature, people go for purchase of ID Fresh daily.

This is opted by 44% of respondents. Celebrity endorsement is supporting for



purchase – around 71%. On the other hand, 55% of the respondents go to other shop

to search for preferred brand, 25% switch over to other brand, 11% do not buy and

9% postpone the purchase.

To ascertain the prominent factor that makes the customers to purchase, mean and

standard deviation is computed. The values of mean and standard deviation have

given an idea of factors. On comparison of means, Brand name (Maximum Mean

4.91) is important followed by Easy to cook (Mean 4.88). It is surprising that, price is

not the factor to make customer to buy.

In terms of SD also, the similar factor are getting listed. That is, Brand Name, Easy to

Cook, Freshness etc. At last, Price is having Maximum SD.

Range for the respective factors gives an idea of Responses in large Scale Survey.

One can understand and interpret the same depending on the requirement of decision.

5.2CONCLUSION

With the financial gain level rising, want for milk, meat or fish, fruits and vegetables

is also increasing in Republic of India. With a lot of urbanization, Indian families additionally

consume more processed foods, a lot of ready to cook foods, etc. Asian Americans, now

numbering over ten million together with the opposite thirteen million persons of Asian

country origin spread everywhere the globe are a large potential marketplace for the RTC

Foods out of India. This creates a scope for the producers to return back out with an extended

vary of dishes together with the same old meals. India had been at the forefront for type of

dishes each in domestic and world market.

Food corporations ought to increase the promotion of RTC food to make awareness

among individuals regarding the thought of RTC food and win over customers regarding the

misconception regarding the else preservatives in RTC food.



5.3SUGGESTIONS

Price - Indian customers are extremely worth sensitive. For any new product they

choose the merchandise supported their worth and a lot of or less the repeat purchases

are compact by worth issue. Same is that the case with able to Eat foods.

Value proposition – RTC foods ought to be perceived as a price proposition by

customers. Price proposition means that it ought to be ready to save ton of your time

and cash with adequate amount to act as a full meal.

Price for cash - customers ought to understand RTC packs as Value for cash i.e. they

ought to feel the cash they spent on that is well spent and not wasted. May be

wherever repeat shopping for can be induced. If customers see RTC as a price for

cash possibility they won’t search for alternative choices like ordering from edifice or

reaching to an edifice.

Quantity and style of food - Indians area unit voracious eaters and therefore the

family size is additionally giant. And Indians area unit won’t to intake a three full

course meal on any day. Thus the number prepackaged within the RTE packs ought to

be spare. Which is wherever the shopping for call can acquire play if the number is

skimpy to meet the whole family then contumaciously they won’t contemplate

shopping for it once more?

Easy accessibility - the largest contender for RTC foods are restaurants that are

simply accessible geographically and accessible with the choice of threshold delivery.

Thence RTC has got to be created accessible in such method that it will be simply

accessible by the consumers throughout traditional searching also as throughout

emergencies.



5.4BIBLIOGRAPHY

G.S. Dangayach, S.G. Deshmukh, (2001) "Manufacturing strategy: Literature review

and some issues”, International Journal of Operations & Production Management,

Vol. 21 Iss: 7, pp.884 - 932

Journal of Product Innovation Management Volume 19, Issue 2, pages 110–

132, March 2002

Journal of Product Innovation Management Volume 13, Issue 3, pages 191–215, May

1996

Journal of Marketing Management Volume 15, Issue 4, 1999

Industrial Marketing Management Volume 30, Issue 6, August 2001, Pages 525–540

Websites

www.itcportal.com

www.wikipedia.com



ANNEXURE

QUESTIONNAIRE

I, P.U. SANDEEP KUMAR, pursuing MBA (MARKETING) in the Department of

Master of Business Administration, NEW HORIZON COLLEGE OF ENGINEERING,

Bangalore.

I need you to be a part of the fact finding exercise which will be useful for completing

my research work for the fulfilment of the MBA degree. The data being collected will be

used purely for academic and research purpose only.

Please tick the answers whichever is appropriate according to you. I sincerely thank

for your valuable time in responding to this questionnaire.

1) Name: ___________________________________________

2) Age

1. 18 to 25 [ ]

2. 25 to 30 [ ]

3. 30 to 45 [ ]

4. 45 and above [ ]

3) Gender

1. Male [ ]

2. Female [ ]

4) Educational qualification

1. PUC [ ]

2. UG [ ]

3. PG [ ]

4. Other [ ]

5) Occupation

1. Student [ ]

2. Employee [ ]

3. Self employee [ ]

4. Other [ ]



6) Monthly income

1. 10000 to 15000 [ ]

2. 15000 to 25000 [ ]

3. 25000 to 30000 [ ]

4. 30000 and above [ ]

7) Are you aware of ready to cook food products?

1. Yes [ ]

2. No [ ]

8) Why do you prefer ready to cook food products?

1. Taste [ ]

2. Nutrition [ ]

3. Convenience [ ]

4. Other [ ]

9) What cuisine do you prefer?

1. Indian [ ]

2. Chinese [ ]

3. Italian [ ]

4. Mexican [ ]

10) Would you buy traditional Indian food products as ready to cook products?

1. Yes [ ]

2. No [ ]

11) Which ready to cook brand do you prefer?

-------------------

ID Fresh [ ]

MTR [ ]

Knorr [ ]



12) From where do you buy the ready to cook products?

1. Grocery [ ]

2. Convenient store[ ]

3. Super market [ ]

4. Other [ ]

13) Where did you get information about ready to cook products?

1. Newspaper/ Magazines [ ]

2. Internet/ Online [ ]

3. Television [ ]

4. Friends/ Neighbours [ ]

5. Radio/ FM [ ]

14) Are the current price of ready to cook products justified?

1. Yes [ ]

2. No [ ]

15) Which ready to cook product do you buy offen?

1. Idly/Dosa Batter [ ]

2. Parota [ ]

3. Chapatti [ ]

4. Instant Mix [ ]

16) What is your frequency of buying ready to cook food products?

1. Daily [ ]

2. Weekly [ ]

3. Fortnightly [ ]

4. Monthly [ ]

17) Do you feel celebrity endorsement affects your buying decision?

1. Yes [ ]

2. No [ ]

18) What is the other Stock Keeping Unit would you prefer?



1. ½ Kg [ ]

2. 3KG [ ]

3. 5Kg [ ]

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

1. Postpone your purchase [ ]

2. Switch over to other brand [ ]

3. Go to the other shop to search for your preferred brand [ ]

4. Do not buy [ ]

20) If another brand of the same product appears in the market, will you prefer to stop buying

this brand and buy the new brand?

1. No, not at all [ ]

2. I may consider [ ]

3. Can’t say [ ]

21) How much importance do you give to the following factors when you purchase ready to

cook products?

FactorsVery

Important

Important Normal Least

important

None

Price

Quality

Availability

Freshness

Packaging

Brand

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Easy to Cook

a study on “entry level marketing strategy for itc to

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