A PROJECT REPORT ON “A STUDY OF MARKETING STRATEGIES OF ITC’S PRODUCTS: WITH SPECIAL REFERENCE TO BINGO” for the partial fulfilment of Master of Business Administration under Biju Pattnaik University of Technology, Rourkela. In Guidance of: Internal Guide: external guide: Prof. SWAPNA MENON Mr. ASHUTOSH KUMAR ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 1 of 76
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A PROJECT REPORT ON
“A STUDY OF MARKETING STRATEGIES OF ITC’S PRODUCTS: WITH SPECIAL REFERENCE TO BINGO”
for the partial fulfilment of Master of Business Administration under Biju Pattnaik University
of Technology, Rourkela.
In Guidance of:Internal Guide: external guide:
Prof. SWAPNA MENON Mr. ASHUTOSH KUMAR
(Faculty marketing) CITY MANAGER,
ITC LIMITED. NAGPUR
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 1 of 53
Acknowledgement am grateful and obliged to Mr. Ashutosh Kumar ( CITY INCHARGE) ITC
LIMITED. NAGPUR, who took the pain to guide me and help me to conduct my
study on time.IMy sincere thanks go to Mr, Sushil Mr. Ritesh, Mr. Atul, of ITC LTD. Who guided
me time to time for completion of my project.
I am also highly obliged to Prof. Swapna Menon (Faculty Marketing, RIMS) for his
kind support and guidance given to me from time to time for the completion of my
project.
I am also immensely thankful to Rourkela Institute of management studies, which
has recommended me for doing the project in the reputed organization and
extremely inspiring to me. I feel deeply regards to my family members and faculty
members of RIMS, who gave me encouragement, which enabled me to reach at this
stage.
Finally I am thankful to them who have helped me directly or indirectly during the
period of project preparation.
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 2 of 53
Study of Selected Research Problem……… Statement of Research Problem……….. Statement of Research Objective………. Research Design & Methodology……….. Analysis of Data…………………………… Summary of Other Findings……………… Recommendation &Conclusion…………
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 27 of 53
CULTURE
ITC’s Vision
• Sustain ITC's position as one of India's most valuable corporations through
world-class performance.
• Create growing value for the Indian economy and the Company's stakeholders.
ITC’s Mission
• To enhance the wealth generating capability of the enterprise in a globalizing
environment
• Deliver superior and sustainable stakeholder value.
ITC’s Core Values
The company’s Core Values are aimed at developing a performance-oriented
organization that is highly customer focused and also creates value for those holding
stake in it. It fully understands that it has a commitment to its stakeholders to act as a
guardian of the company from stakeholder’s point of view and deliver results in a
manner that actualizes stakeholder’s interest on a long-term basis.
It also delivers on the commitment to its customers by consistently addressing their
needs on product quality, value and overall satisfaction. It respects the values of
people and also encourages individuals to pursue their dreams, values their
differences and helps them to experiment in the pursuit of various opportunities.
ITC firmly believes in the concept of Excellence with their mantra being, “we do what
is right, do it well and win. We will strive for excellence in whatever we do”. It is
constantly in the pursuit of better and newer products, processes, services and
management practices. Apart from the interest of shareholders they also address ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 28 of 53
their commitment to the nation to generate economic value, at the same time
ensuring that in achieving these goals no compromises are made whatsoever in
complying with rules and regulations as specified by law.
ITC’s Philosophy
ITC believes in practicing ethical behaviour among the corporate citizen. The
company follows an HR policy that is regulated by Teamwork, Trust, Collaboration,
Mutuality, Meritocracy, Objectivity, Collaboration, Self-respect and Human-dignity. It
is also deeply committed to make the company a gender friendly place for each
individual while also ensuring enhancement of equal opportunities for men and
women, preventing sexual harassment of any form and the adherence to good
employment practices. It is ensured that the interest of the company is foremost and
in this context acceptance of any kind of gifts or payments from suppliers or
customers is viewed as a serious breach of company discipline. And such acts are
also considered as damaging to the reputation of the company.
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 29 of 53
High standards of housekeeping and hygiene are followed to ensure excellent
physical working conditions. It is understood that all the directors, senior
management and employees shall conduct themselves in an honest manner and
avoid any conflict of interest.
The top officials and employees of ITC believe that ITC provides them freedom at
work and resources to experiment. Employees take pride in working for ITC for its
work culture, environment, and the way people are treated. They are consulted
before a new project\system is introduced and their concerns and suggestions
addressed. ITC also gives a lot of input to develop their skill and career. They give
utmost importance to equal opportunities, better work environment.
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 30 of 53
Literature Review
Marketing Mix
Product:Anything offered to a market for attention, acquisition, use, or consumption that
might satisfy a need or want. Product provides the functional requirements sought by
consumers.
Product Is a bundle of satisfaction that a customer buys.
Almost always a combination of tangible and intangible benefits
A product may be new to the company, but not to the customers and in reverse a
product may be new to the customers but not to the company.
NEW PRODUCT DEVELOPMENT PROCESS:
IDEA GENERATION
IDEA SCREENING
CONCEPT TESTING
MARKETING STRATEGY DEVELOPMENT
BUSINESS ANALYSIS
PRODUCT DEVELOPMENT
TEST MARKETING
COMMERCIALISATION / LUNCING
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 31 of 53
Price:
Pricing Policies:If a firm has the power in its market to set its own price, it can adopt a pricing policy.
Market penetration pricing: setting prices of products relatively low
compared to those of similar products
Destroyer pricing: Deliberate price cutting or offer of ‘free gifts/products’ to
force rivals (normally smaller and weaker) out of business or prevent new
entrants
Follow-the-leader pricing: A pricing strategy adopted by firms which copy
the market leader's prices
Skimming: High price, Low volumes, Suitable for products that have short life
cycles or which will face competition at some point in the future.
Pricing Methods:1- Cost Based Pricing
cost plus, markup pricing
easy, costs known, minimizes price competition
ignores demand elasticity, not profit maximizing
target return of investment
use breakeven analysis to find a price to yield a target ROI
…use sales volume to derive pri
2- Demand Based Pricing
Perceived value
It requires detailed knowledge of buyer behavior and demand elasticity
Only true profit maximizing strategy
It ignores costs and competitorsROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 32 of 53
3- Competition Based Pricing
Going rate pricing
Used when costs difficult to measure
Competitors lack differential advantage
Sealed bid
Forces competitors to lowest price
4- Select Final Price
Psychological pricing
Know demand elasticity
Start high, work toward costs
Discounts
Cash, trade, quantity, or seasonal
Promotional pricing.
5- Value Pricing
Price set in accordance with customer perceptions about the value of the
product/service
Examples include status products/exclusive products
6- Loss Leader
Goods/services deliberately sold below cost to encourage sales elsewhere
7- Price Discrimination
Charging a different price for the same good/service in different markets
Requires each market to be impenetrable
Requires different price elasticity of demand in each market
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 33 of 53
8- Destroyer/Predatory Pricing
Deliberate price cutting or offer of ‘free gifts/products’ to force rivals (normally
smaller and weaker) out of business or prevent new entrants
Anti-competitive and illegal if it can be proved
Place :
What is a Marketing Channel? This is a set of interdependent organizations involved in the process of
making a product or service available for use or consumption.
Channel functions Gathers information on customers, competitors and other external market
data
Develop and disseminate persuasive communication to stimulate purchases
Agreement on price and other terms so that transfer of ownership can be
effected
Placing orders with manufacturers
Acquire funds to finance inventories and credit in the market
Assume responsibility of all risks of the trade
Successive storage and movement of products
Helps buyers in getting their payments through with the banks
Oversee actual transfer of ownership
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 34 of 53
Types of intermediaries Distributors
Wholesalers
Retailers
Department stores
Promotion:Promotion is only a means of communication about the product without the
motive of persuading for that act which a customer do not want to do.
In marketing terms, the role of promotion is to inform, remind and persuade
existing or prospective customers to accept, resell, recommend or use of a
product, service and ideas.
What is Promotion mix?Promotion mix consists of careful blending of advertising, personal selling, sales
promotion, public relations, publicity and propaganda; to accomplish the
marketer’s promotional objectives.
When deciding the promotional mix, the management should consider:-
The target audience/ Market size and concentration
The objective of the promotional effort.
The nature of the product.
The stage of the product’s life cycle.
The funds available for the promotion/ Resource
Availability and the cost of each promotional tool.
Customer information needsROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 35 of 53
Elements under Promotion mix
a) Advertising
b) Sales Promotion
c) Personal Selling
d) Public Relations
e) Publicity
f) Propaganda
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 36 of 53
Study of Selected Research Problem
STATEMENT OF RESEARCH PROBLEM
In the branded snacks market, to get down to basics, Frito Lay commands a share of
45%, followed by Haldiram’s at 27% and ITC at 16%. The rest is divided between a
handful of new entrants, parle and many regional players. Out of these ITC’s Bingo
is a new entrant in the market, which was launched in 2007. ITC has launched Bingo
in a wide variety of flavours and formats, ranging from potato chips to finger snacks.
Because of its different and catchy advertisements Bingo has created a buzz in the
market. Therefore, our aim was to find out the most popular flavour of Bingo among
all the offerings. We began our analysis by dividing people into those who like to eat
snacks and those who don’t. We based our study on the survey of people who like to
eat snacks. This survey was conducted in Nagpur. To collect the data we designed a
questionnaire.
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 37 of 53
STATEMENT OF RESEARCH OBJECTIVE
The main objectives of our research were as follows:
To find out what percentage of population likes to eat snacks.
To find out which flavour of Bingo is most preferred.
To analyse the reason for the popularity of the most preferred snack
To know the satisfaction level of people who eat Bingo
To find out how much people spend on snacks weekly.
To find out the preferences of people for different brands
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 38 of 53
RESEARCH DESIGN & METHODOLOGY
Research design is the basic framework which provides guidelines for the rest of
research process. It specifies the methods for data collection and data analysis .In
this research project we have used the survey method of data collection, to be more
specific questionnaire method. We conducted a survey in Nagpur. Out of the
universe of 500 our sample size is 50. Respondents in the sample size were asked
to fill the questionnaires to gather the data.
The data for the research has been collected through interaction with people &
personal interview as per the prescribed format of questionnaire. The questionnaire
includes both open ended question and close ended question.
The format of the questionnaire has been attached in the APPENDIX.
Since, I wanted to know the percent of market shares of individual operators in my
area of survey; I followed UMBRELLA SURVEY method for my survey. I took care
that almost all outlets are covered in my area of survey to get the most effective
results.
Steps Involved:a) I selected a particular area to survey in a particular date.
b) I recognized any shop as general stores and betel shops outlet by looking
at banners, signboards, glow signs, wranglers etc.
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 39 of 53
c) I started to survey from one corner of the town to another corner and took
care that maximum outlets are covered.
The outlets consisted of:-
1) General stores
2) Medicine stores
3) Variety Stores
4) Betel shops etc.
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 40 of 53
Limitations There were few limitations to this methodology.
Those were:
a) Large no. of outlets was supposed to be covered within a short interval of
time.
b) Survey was possible only during the peak hour of business.
c) Most of the outlets remained busy & could not co-operate.
d) Many retailers did not cooperate due to fear of vigilance.
e) Many outlets were new & hence gave hypothetical data.
f) Few outlets demanded bribe in lieu of data or information.
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 41 of 53
ANALYSIS OF DATA
In order to extract the meaningful information from the data collected an analysis of
data is done using pie charts, bar graphs etc.
The first objective of the research project is concerned with finding
out what percentage of people likes to eat snacks. The pie chart
given below is clear on the percentage of people who like to eat
snacks. Out of 50 respondents 35 like to eat snacks while 15 don’t. 70% likes to eat
snacks while 30% don’t.
30%
70%
Preference for Snacksno yes
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 42 of 53
Our second objective is concerned with finding out which flavour of Bingo is
most preferred.
Table showing the responses of people:
Flavours Respondents
(Value)
Respondent
s (%)
Spicy Masala Potato Chips 3 8
Premium Salted Potato Chips 1 3
Juicy Tomato Ketchup Potato Chips 3 8
Chatkila Nimbu Achar Potato Chips 1 3
Red chilli Bijlee PotatoChips 3 8
Mad Angles 22 61
Tedhe Medhe 1 3
Livewires 2 6
The above table and pie chart shows the responses of the people. It is clear that Bingo’s
Mad Angles dominates the market for Bingo. The second spot is shared by two flavours
equally—Spicy Masala potato chips, Juicy Tomato Ketchup potato Chips and Red Chilli
Bijlee potato chips. Third most popular format of Bingo is Livewires and the fourth spot is
shared by Salted Potato Chips, Chatkila Nimbu Achar potato chips and Tedhe Medhe.
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 43 of 53
The third objective was to analyse the reasons for the popularity of the most
preferred flavour.
For this the respondents were asked what do they like most about Bingo. Following
pie chart shows their responses:-
46%
11%16%
8%
13% 6%
Reason for PopularityTaste Variety Quality Price Quantity Packaging
Taste 46
Variety 11
Quality 16
Price 8
Quantity 13
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 44 of 53
Packagin
g 6
From the above pie chart we can see that people like the taste of Bingo the
most i.e. they like to eat Mad Angles Because of its unique format and flavour.
Fourth objective was to find out how much people are satisfied with Bingo.
Following pie chart shows the satisfaction level of people:
17%
45%
38%
Satisfaction LevelUnsatisfied Very Satisfied Somewhat satisfied
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 45 of 53
The fifth objective was to find out how much people spend weekly on snacks.
money spent0
2
4
6
8
10
12
14
16
18
20
Below 5050-100Above 100
Number of people
From the above diagram it is clear that most people spend below Rs.50 on
Snacks. And very small part of the sample spends more than Rs.100 on
snacks weekly.
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 46 of 53
Our sixth and last objective was to find out the preferences of people
for different brands. Here, we aim to find out the most popular brand
of snacks excluding Bingo.
Snacks Brand0
2
4
6
8
10
12
14
LaysHaldiram'sUncle chipsDiamondParle
Number of people
In the above graph we can see that Frito Lays is the most popular brand
among people followed by Uncle Chips and Haldiram’s. Next is Parle
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 47 of 53
Nankeens. The least popular brand appears to be Diamond. It may be
because of, it is a local brand and is not so popular in the snack industry in India.
SUMMARY OF OTHER FINDINGS
17 people out of 36 people who like to eat snacks feel that as compared to
other brands Bingo is much better. Other 12 feel that Bingo is somewhat
better and 7 feel that Bingo is about the same as other brands. No one feel
that Bingo is somewhat worse or much worse than other brands.
When people asked how often they eat Bingo 22 people said once a week
or more often, 11 people said everyday and 3 people said 2-3 times a month.
When people asked about their weekly expenditure on snacks, 56% people
spend below Rs.50, 30% people spend between Rs.50 – Rs.100 and only
14% spend above Rs.100.
When people asked excluding Bingo which brand snacks like the most,
Lays(Frito-Lay) is the most popular among the people than Uncle chips and
Haldiram’s followed by Parle. The least popular brand is Diamond.
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 48 of 53
RECOMMENDATION & CONCLUSION
After conducting the survey we are in a position to say that ever since its
launch Bingo as a preferred brand is on a rise. Although Frito Lays is the most
popular brand Bingo has carved a niche for itself. Bingo is in the growth stage
of its life cycle. Given more time it is capable of capturing a larger market
share and giving tough competition to other brands. Overall people seem to be
satisfied with Bingo.
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 49 of 53
APPENDIX
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 50 of 53
QUESTIONNAIRE
QUESTIONNAIREI am RANJIT KUMAR AGARWAL. I am currently doing my SUMMER INTERNSHIP PROGRAMME(SIP) for ROURKELA INSTITUTE OF MANAGEMENT STUDIES, ROURKELA under BPUT, Orissa, on “A STUDY OF MARKETING STRATEGIES OF ITC’s PRODUCTS WITH SPECIAL REFERENCE TO BINGO”.
Therefore, I would be very grateful to you, if you could spare some of your valuable time to complete following questionnaire.
Name: Gender:
AGE : City:
OCCUPATION :
PROFESSIONAL
BUSINESSMAN
SERVICE
STUDENT
ANY OTHER
General Instructions:
Answer all questions. Indicate your answer by marking a tick against an appropriate option.
1. Which company’s snack you prefer the most?a) ITC d) PEPSICO.
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 51 of 53
b) HALDIRAM’S e) PARLEc) DIAMOND
2. Reason for your choice?a) Good taste c) Good Adb) Packaging d) Availability
3. Which flavour you prefer the most?a) Salted c) Red chillib) Tomato d) Any other............
4. How often do you have snacks?a) Once a week or more often c) 2 to 3 times a monthb) Everyday d) Occassionally
5. How much do you spend weekly on snacks?a) Below Rs.50.00 c) more than Rs.100.00b) Rs.50-Rs.100.00
6. Which media influences you the most?a) T.V. c) Magazineb) Newspaper d) Banner
7. What is the reason that makes you remember the Ad.?a) Message of the Ad. c) Logical reasoning of the Ad.b) Frequency of the Ad. d) Characters of the Ad.
8. Score the below factors for the respective companies.( Score 1-5 )
ITC PEPSICO. HALDIRAM PARLE DIAMOND
Taste
Availability
Price
Brand name
PackagingROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 52 of 53
Variety
9. Before switching on to …………………, which company’s snack did you prefer?a) ITC d) PARLEb) PEPSICO e) DIAMONDc) HALDIRAM”s
10. Reason for your choice?a) Good taste c) Good Ad
b) Packaging d) Availability
11. Which flavour you like of that company?a) Salted c) Red chillic) Tomato d) Any other...........
BIBLIOGRAPHY
www.itcportal.com
www.wikipedia.com
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 53 of 53