Monty_Arora_ITC_2_[1]

A PROJECT REPORT ON

IN

FOR THE AWARD OFPARTIAL COMPLETION OF

MASTER OF BUSINESS ADMINISTRATION (MBA)FROM

U P Technical University, LucknowUnder Supervision ofMr. Akshay Ahuja(Marketing Manager)ITC Ltd. Saharanpur

Under Guidance ofMrs. Nidhi Mathur

(Faculty – MBA Department)IPEM, Ghaziabad

Submitted byMonty Arora

MBA (2003-2005)

Institute of Professional Excellence & ManagementA-13/1, S.S. G.T. Road Industrial Area, NH-24, Ghaziabad-201001

ACKNOWLEDGEMENT

2

From this acknowledgement .I want to say thanks to persons who

helped me directly or indirectly in shaping the present study. I find myself

unable to re-compensate without the help provided by these elite personalities,

through my pen picture. May God help them in all times of life!

With profound pleasure and privilege, I express my deep gratitude to

Mr. S. Subba Rao (Branch Manager) of ITC for granting me a permission to do

summer training in such a prestigious company.

The successful completion of this project entitled “Estimate Biscuit

Industry and Identify the Critical Success Factors in Saharanpur for ITC”

because of help and cooperation from several quarters. I would like to extend

my sincere thanks to our esteemed guide Mr. Akshay kumar (Area Executive)

for his kind co-operation and providing me a good environment to work on.

I am also thankful to Mrs. Ruchika Jaiswal, Mrs. Nidhi Mathur, and my

friends and respondents for providing me with valuable input from time.

Finally, I would like to thank my family members for their understanding and

help while I was working on this project.

(Monty Arora)

3

PREFACE

The customer is king: finally ten years after the liberalization of India's

economy began the marketplace has, suddenly, become frighteningly

competitive. Not only have new players including a host of powerful

translation, stormed into the country, there are more brands available then even

before in every segment of every market. Befittingly, for the time in above 50

years since Independence, delivering the final verdict will be the customer who

is already finicky about what will buy, in future, only that which meets her

every desire. This demands more intimate understanding of the customer by the

smart companies'. In my project I have tried to Estimate Biscuit Industry and

Identify the Critical Success Factors in Saharanpur for ITC.

4

Contents

Purpose of Training 06

Company Profile 09

Introduction 10

Products of ITC 13

ITC Structure 19

Story of ITC Saharanpur 23

History of Saharanpur 30

ITC Family 32

SWOT Analysis 35

About Biscuit Manufacturers 37

Britannia 38

Priya Gold 43

Parle 46

Anmol Bakers Ltd. 51

Sunfeast – An Overview 53

5

Project Plan for Field 56

Research Methodology 60

Introduction 61

Objectives of the Study 62

Research Description 63

Problem Formulation 69

Research Proposal 70

Analysis & Interpretation 71

Findings 90

Limitations & Problems 92

Conclusions 94

Suggestions & Recommendations 96

Bibliography 99

Annexure 101

6

PURPOSE OF THE TRAINING

7

PROJECT TITLE:

Estimate the biscuits Industry and identify the critical success factors.

To determine key players operating in the Industry by estimating their

volumes and critically evaluate distribution practices.

THE STUDY SHALL ENTAIL THE FOLLOWING :

Complete understanding of the category and industry :

? The key players with brand wise volumes.

? Availability & Visibility figures of key players by channels.

Understanding of the distribution process and the components of the distribution

chain:

8

? The players: Distributor, trade (Wholesale & retail), Salesman.

? Various channels and their dynamics (wholesale, convenience, grocer, tea

stall/restaurant...)

? Distribution infrastructure (vehicle, sales force...)

? Distribution norms and practices: (inventory, billing, credit, delivery,

frequency of service....)

? Strengths & Weaknesses of various players as regards distribution.

Understanding of various trade schemes in the market :

? Critically analyze the schemes as regards their design and effectiveness

? Recommendations for ITC to formulate a distribution strategy to align

with industry needs

9

INTRODUCTION OF COMPANY

Founded in 1910 as cigarette manufacturing and marketing organization,

the ITC group has evolved into a multi market, multi technology and multi

product group. An associate of BAT industries plc; ITC is India’s number one

company and the flagship of ITC group which has turnover of US $2 billion. A

commitment to excellence has helped the ITC group secure and expand its

leading position in key markets. And the group has over the years developed

distinctive strength in every aspects of its business to achieve its objective.

10

Strong Financial Base

Today the ITC group has one of the highest market capitalization in

India, nearing US $ 3 billion .With a asset, base ITC has the staying power to

invest in capital intensive, long gestation projects. Substantial reserve and

profitability Indian companies today.

11

Wider distribution

ITC has a wide distribution network that consist of 24, 00 people, and

one that co-ordinates supplies from a dozen manufacturing location to over

million retail outlets spread across 3700 towns daily.

Global outlook

ITC understands that in the year to come the only way to stay ahead will

be catering to a global market. Thus it has already begun working towards this

objective. Last year it has emerged as India’s largest exporter. ITC’s product

designed to meet international standards, keeping this in mind, the company has

formed enduring. Future plan of the company include making India a major

cigarette manufacturing base for global brands.

Consumer focus

ITC’s products are used by millions of consumers from every walk of

life. It has been able to create brands leaders in virtually. Every business it

operates in –

12

Cigarette - Wills, Scissors, Gold flake, Classic, India kings

Edible Oils - Sun drop, Crystal, Sdham. Real Gold

Hybrid Seed - Adarsh

Paper / Tissue - Bhadrachalan / Tribeni

Hotel - Welcome group – Maurya Sheraton

Cost Leadership

ITC possesses an extensive manufacturing infrastructure for each of its

business. An example on vertical integration ensures total quality control. The

group has 12 manufacturing locations in India for cigarette, packaging, printing,

and agro-processing.

13

PRODUCTS OF ITC Today ITC is dealing in almost all the sectors of production. Some major

areas of production are as follows:-

LEAF TOBACCO DIVISION

ITC has brought modern farm practices and continuous improved to

Virginia and Burley Tobacco cultivation. The company’s green leaf threshing at

Anarporti and Chirala are the largest in Asia. They are the first tobaccos

threshing plants in the world to get ISO 9002 accreditation for matching

International norms.

ITC’s ILTD (Indian Leaf Tobacco development Division) is India’s

largest buyer, processor and exporter of leaf tobacco. Through its emphasis on

quality and services, ILTD, is striving to make tobacco the “Golden Crop Of

India”.

HOTELS

ITC entered the tourism industry in the year 1975 with the WELCOME

Group, ITC’s hotels division. In less then 20 years it has created chain of

Luxury Hotels at key location such as Agra, Andaman, Aurangabad, Jaipur,

Jodhpur etc. for discerning business traveler it has created two distinct options,

the exclusive Sheraton Towers, a hotel with in a hotel and the executive, club at

14

all its destinations across the country. The Mourya Sheraton at Delhi and the

Mughal Sheraton at Agra are the best in the world.

SEEDS

ITC’s Agro-Business Division was set up to develop, produce and

market hybrid and high yielding, varieties of seeds to farmers. Today, this

division is a leader in oil seeds and other cereal crops. ITC’s Adarsh have

emerged as one of the India’s leading brands of seeds well received by the

farming commodities. Its Sunflower Hybrid Seeds performed better then the

best in the National Trials Conduct by the Indian Council of Agricultural

Research. This is a result of a commitment to plant breeding, farm technology,

quality seed production and an extensive rural marketing network.

CIGARETTES

ITC owns the brand leadership in every segment The Company has

launched several new brands such as Capstan Menthol, Filter, Capstan standard,

Gold Flake Kings, and Berkley Filter. Gold Flake Premium Filter has since been

rolled out of market and Gold Flake Light King size has been introduced ITC’s

strong brand portfolio has is demonstrated by the fact that scissors is the brand

leader in volume, Wills remain as the largest free standing consumer product in

India and Wills Gold Flake family has grown to be come the largest single

trademark in the consumer product.

ITC’s factories at Calcutta, Saharanpur, Bangalore and Munger have the

9002-quality accreditation The Company has signed an agreement with the

British American Tobacco Company Limited (BAT) of which it is already an

15

associate. As per this agreement ITC Ltd. launched BAT’s global brand such as

State Express 555 and Benson and Hedges.

EDIBLE OILS

In the edible oil business, the ITC agri business division and its

associates ITC agro Tech Ltd. have set up one of the India’s largest state-of-art

interested in oilseeds Complex in Andhra Pradesh. ITC brand like Sun drop,

Crystal and Real Gold have established them in the refined edible oil market.

Infect Sundrop is the largest selling brand of the Sunflower oil in the country.

ITC has also begun promoting the development of palm oil.

PACKING AND PRINTING

It develop pack designs on 24-hours turnaround basis International

Liquor brands and other fast moving consumer products manufactures are today

some of the users of the company packing products. Through a strategy of being

market leader and technology driven the ITC group has achieved market

leadership and in the largest integrated source of paper and paperboard

products. ITC’s printing and packaging division has a technical collaboration

with Liquid Box Corporation USA, to manufacture and market bag-in box

system in India.

16

SPECIALITY PAPERS

In 1979, ITC entered the papers industry with ITC Bhadrachalam

paperboards. Through the application of clonally technology and scientific

plantation management, it has revolutionized land productivity.

Today it offers the widest variety of papers and paperboard

manufactured by the single group in India. Tribeni Tissues, which

amalgamated, with the ITC group has emerged as the leader in custom specific

specialty paper for cheques and passports and for the packaging, printing,

insulation decorative laminate and communication industries.

FINANCIAL SERVICES

ITC financial services were inaugurated in 1986. It diversified in to Asset

Financing and capital market operations through its associates ITC Classic

Finance Ltd. Classic has also ventured into Merchant and investment banking,

capital market intermediation, International advisory services and public deposit

mobilization. Classic Today is one of the best capitalized Financial services

Companies.

SPECIALTY PAPER

ITC operates a 33000 TPA plant at Tribeni, West Bengal, to

manufacturing specialty papers, mainly with the imported wood pulp cigarette

packing paper to BAT subsidy in Africa and Central Asia. Margins in the

business have been adversely affected with stiff price competition from

17

domestic as well as imported products post reduction in import duty. ITC has

been scouting for an international joint venture partner for upgrading

technology in this business.

The division received certification under ISO9001 quality standards and

Gold Star awards From Royal Society for Prevention of accidents, UK .The

specialty. Besides captive consumption, ITC also exports paper division

contributed to Rs.1bn. to the total revenues during FY00 compared to 880.5mn

in FY99. The company produced 16355 tons of specialty paper during the year.

International business division, which is involved in handling exports from the

company, did exports of Rs.3.2 billion during FY00.The division exports agri.-

products to various countries across the globe.Recently the division has

decided to set up e-choupals for Shrimps and coffee. These e-choupals would

provide up-to -date information grading local and global weather and scientific

practice followed at different place to farmers. The division has plans of setting

up 300 such choupals across the country current year ITC also has an InfoTech

division, which is being realigned to focus on e-commerce software

solutions.The company plans to hive off its InfoTech division in to a separate

subsidiary.

NEW ENTERENCE

The company has decided to venture in to a number of new and unrelated

areas. ITC has recently launched its leisure apparels under Wills sports brand to

leverage on its Wills brand equity. The company had also ventured into

18

Branded Holidays business, which is being reviewed as performance has been

below expectations.

EARNING FACTORS

Excise duty changes on cigarettes.

New product launches are as: Rothmans International brand portfolio

may be launched through ITC, as Rothmans has withdrawn

proposal for 100% subsidiary post global merge with BAT.

Leaf & tobacco crop depends on weather conditions which results its

impact on material costs.

Export markets reduce dependence on domestic market.

Exports are also affected by the domestic crop production.

Paper/paperboard margins depend on International paper & wood pulp

Prices as well as charges in custom duty rates.

Excise duty exemption in northeastern states And also one of the largest

Non banking financial services.

19

ITC STRUCTURE

As stated earlier, ITC is a well-diversified company with the interests in

various businesses. To facilitate efficient running of the business, the company

has spit up in to several division, which enjoys great deal of functional

autonomy. “Divisional Board” or the “Divisional Executive Committee”

depending up on its size heads each division.

Although management is vested in the Board of Directors consisting of

the both Executives and non-executive directors, most of the authorities and

responsibilities have been delegated to committee of directors which comprises

of executive directors only. All of the Divisional boards and divisional

executive Committees report to Committee of directors.

The various divisions with their head quarters are as follows:

20

NAME PLACE

1- Corporation Headquarters (CHQ) Calcutta

2- Indian Leaf Tobacco Development Division (ILTD) Guntur

3- Indian Tobacco Division (ITD) Calcutta

4- Packaging and Printing Division (PPD) Tiruvottiyur

5-ITC Bhadrachalam Paper Board Ltd. Secundrabad

6- Trebeni Tissue Division Calcutta

7- Hotels Division (HD) New Delhi

8- Export Division (ED) New Delhi

9- Agri-business Division (ABD) Hyderabad

10- International Business Division (IBD) Mumbai

11- Information Systems Functions (IFS) Calcutta

12- Integrated Research Center (IRC) Bangalore

13- International Travel House (ITH) Calcutta

Divisions are further broken up into component unit and branches such as

etc., for example- the hotel division holds around Marketing branches,

Cigarettes factories, and Hotel properties 17 hotels under the name of Welcome

Group.

21

PRODUCTION BRANCHES

The production branches better known as cigarette factories are situated in

four factories, viz.

I. Calcutta

II. Bangalore

III. Saharanpur

IV. Munger (Bihar)

Following are the subsidiaries fall under ITD:

1. Surya tobacco company

2. All India tobacco company limited

3. Élan enterprises Ltd.

4. Fortune tobacco company

5. ITC filtrona Ltd.

22

Marketing overview: ITC has got 17 “trade marketing branches” in

the following regions:

NORTH:

1. New Delhi 4. Lucknow

2. Saharanpur 5. Jaipur

3. Jammu

SOUTH:

1. Bangalore (H.Q.) 4. Secundrabad.

2. Coimbatore 5. Madras

3. Ernakulam

EAST:

1. Calcutta (H.Q.) 3. Guwahati

2. Vishakapatnam 4. Patna

WEST:

1. Mumbai (H.Q.) 3. Bhopal

2. Ahemadabad 4. Nagpur

Apart of the above, a major constituent of ITD is tobacco technology

Centre, situated at Bangalore.

23

THE STORY OF ITC SAHARANPUR

ITC Saharanpur was born out of a planned inroad and a fortuitous

meeting, which was to unleash the beginning of the dream by 1924 the

Peninsular Tobacco Company had manufacturing unit at Munger and

Bangalore and was now combing the northern region to locate it’s third one.

Saharanpur seemed the ideal choice due its location advantage being on the

main railway lines connecting Calcutta as well as Bombay with west Punjab

right up to Peshawar.

As the story goes R.G Baker, one of the stalwarts of the company, visited

Saharanpur in search of suitable land to locate the factory. The visit had almost

proved to be an exercise in futility and Mr. Backer was standing at the railway

station ready to leave. Just then BABU SHIV DAYAL SHARMA walked up to

him with an invitation to inspect the land bounded on the west by the canal and

24

to the north by Sardar Patel marg. The site as approved and the initial lease were

signed on the 7th July 1925. Thus began an era of challenge and transition.

J.P.HILL became the first factory manager and initiated operations

with a labor force of 26 men (at 8 annals a day), a technology of fine rose

watering can for conditioning, 2 lakhs cutting machine,1 dryer,1 cooler,3

standard making machines(making 500 cigarettes a minute),3 rose cracknel

packing machines and with an engineering department out in the open under the

mango tree trees opposite the site of the pp school. Production in the first month

was 5.9 million and touched 23 million by the end of year.

The decade of the thirties witnessed the series of unprecedented events.

These ranged from a three-year closure in 1934 owing to depressed trading

condition and the Swadeshi and Boycott Movement to a devastating

earthquake in the same year. The factory in Munger was severally hit, so

opening of the Saharnpur unit compensated the loss of production. In 1932 the

first Moline M2 packer arrived.

Another landmark event in the annals of time was the foundation of the

Cigarette Worker’s Union in 1938 with the help of J.B. Miller and Pandit

Kamalnath. The registration of the union took place in March 1939.

30th Dec. 1953 was an important milestone in securing sound working

relations between workers and management. This day marked the signing of the

First Long Term Agreement. The post-war years heralded an era of

modernization end experimentation for ITC Saharanpur. Two new Lauhoff

Stem Rolling Machines, Two MRTC Machines and the first format or

Threshing and Classifying plant made their entry. 1954 signified the arrival of

the Forklift, which revolutionized the method of work in the go downs. By the

25

end of sixties wooden cases had gradually given way to CFC’s (corrugated fiber

containers).

In 1968 MK8 makers arrived along with PA7RO Filter Attachment.

The factory was running in three smooth shifts and production had soared up to

924 million. It was at this juncture that Ted Ramble retired after the longest

single tenure as branch manager.

In 1970 the Imperial Tobacco Company changed its name to India

Tobacco Company Ltd. Workers welfare activities saw an acceleration with

the launch of worker’s Welfare Scheme. Also a greater emphasis was now been

laid on the creation of a culture of continuous learning.

In 1983 Computer Center was set up in the unit by which time the

payroll, Financial Accounting and Inventory system had been computerized. In

1984 and Integrated Factory Information System was developed in Bangalore

and passed on other units. The technical training center was established in 1986

to provide technical training and know how to workers and managers alike.

In 1988 LTA was the landmark event. It made provision for the

computerization of work processes for clericals in the factory and also for

secondarization, which involved the physical merger of the packing and making

departments, which till now has been in relative isolation of each other. The

Duplex Packer was introduced in 1989 and was readily received and adopted

too. Simultaneously high quality requirements and subsequently growing

competition had become realities of the day. The introduction of high speed

LOGA Machine in 1993 was an example of the first post-liberalization attempt

to upgrade the existing state to tune with these demands.

26

Anticipating substantial growth in the market share a massive

modernization and up gradation project was launched in Saharanpur involving

an overhauling of infrastructure and service to cater to a truly world class

factory.

In June 1994 the political fortunes in the state of U.P. turned and a High

Luxury Tax was imposed on all br4ands of cigarettes costing Rs. 5 or more per

packet. This hampered operations in the factory and the manufacture of

cigarettes (except for exports) was stalled.

In 1955 ITC, Saharnpur had the rate distinction of winning the British

Safety Council’s National Award for the third year in succession for a low

accident rate.

Fortunately the Luxury Tax too was lifted in October 1995 through an

ordinance of Governor and normal production was resumed. It had been a long

struggle with the entire unit displaying remarkable fortitude. Despite all

limitation even during this crisis Saharanpur was the largest manufacturer of the

Bingo Cigarettes like Scissors Std., Capstan Std., Berkeley Std., Bristol and

Hero and the exports like Huston and Midland (to USA) and Classic (to Russia).

In 1996 a Long Term Agreement between the management and the union

is another instance of continuous process in the history of ITC, Saharanpur. The

agreement provides the flexibility in work norms, practices and manning

ensuring world-class level of performance and productivity.

ITC Saharanpur was born out of a planned inroad and a fortuitous

meeting, which was to unleash the beginning of the dream.

By 1924 the Peninsular Tobacco Company had manufacturing unit at

Munger and Bangalore and was now combing the northern region to locate it’s

27

third one. Saharanpur seemed the ideal choice due its location advantage being

on the main railway lines connecting Calcutta as well as Bombay with west

Punjab right up to Peshawar.

As the story goes R.G Baker, one of the stalwarts of the company, visited

Saharanpur in search of suitable land to locate the factory. The visit had almost

proved to be an exercise in futility and Mr. Backer was standing at the railway

station ready to leave. Just then BABU SHIV DAYAL SHARMA walked up to

him with an invitation to inspect the land bounded on the west by the canal and

to the north by Sardar Patel marg. The site as approved and the initial lease were

signed on the 7th July 1925. Thus began an era of challenge and transition.

J.P.HILL became the first factory manager and initiated operations

with a labor force of 26 men (at 8 annals a day), a technology of fine rose

watering can for conditioning, 2 lakhs cutting machine,1 dryer,1 cooler,3

standard making machines(making 500 cigarettes a minute),3 rose cracknel

packing machines and with an engineering department out in the open under the

mango tree trees opposite the site of the pp school. Production in the first month

was 5.9 million and touched 23 million by the end of year.

The decade of the thirties witnessed the series of unprecedented events.

These ranged from a three-year closure in 1934 owing to depressed trading

condition and the Swadeshi and Boycott Movement to a devastating

earthquake in the same year. The factory in Munger was severally hit, so

opening of the Saharnpur unit compensated the loss of production. In 1932 the

first Moline M2 packer arrived.

28

Another landmark event in the annals of time was the foundation of the

Cigarette Worker’s Union in 1938 with the help of J.B. Miller and Pandit

Kamalnath. The registration of the union took place in March 1939.

30th Dec. 1953 was an important milestone in securing sound working

relations between workers and management. This day marked the signing of the

First Long Term Agreement. The post-war years heralded an era of

modernization end experimentation for ITC Saharanpur. Two new Lauhoff

Stem Rolling Machines, Two MRTC Machines and the first format or

Threshing and Classifying plant made their entry. 1954 signified the arrival of

the Forklift, which revolutionized the method of work in the go downs. By the

end of sixties wooden cases had gradually given way to CFC’s (corrugated fiber

containers).

In 1968 MK8 makers arrived along with PA7RO Filter Attachment.

The factory was running in three smooth shifts and production had soared up to

924 million. It was at this juncture that Ted Ramble retired after the longest

single tenure as branch manager.

In 1970 the Imperial Tobacco Company changed its name to India

Tobacco Company Ltd. Workers welfare activities saw an acceleration with

the launch of worker’s Welfare Scheme. Also a greater emphasis was now been

laid on the creation of a culture of continuous learning.

In 1983 Computer Center was set up in the unit by which time the

payroll, Financial Accounting and Inventory system had been computerized. In

1984 and Integrated Factory Information System was developed in Bangalore

and passed on other units. The technical training center was established in 1986

to provide technical training and know how to workers and managers alike.

29

In 1988 LTA was the landmark event. It made provision for the

computerization of work processes for clericals in the factory and also for

standardization, which involved the physical merger of the packing and making

departments, which till now has been in relative isolation of each other.

The Duplex Packer was introduced in 1989 and was readily received and

adopted too. Simultaneously high quality requirements and subsequently

growing competition had become realities of the day. The introduction of high

speed LOGA Machine in 1993 was an example of the first post-liberalization

attempt to upgrade the existing state to tune with these demands.

Anticipating substantial growth in the market share a massive

modernization and up gradation project was launched in Saharanpur involving

an overhauling of infrastructure and service to cater to a truly world class

factory.

In June 1994 the political fortunes in the state of U.P. turned and a High

Luxury Tax was imposed on all br4ands of cigarettes costing Rs. 5 or more per

packet. This hampered operations in the factory and the manufacture of

cigarettes (except for exports) was stalled.

In 1955 ITC, Saharanpur had the rate distinction of winning the British

Safety Council’s National Award for the third year in succession for a low

accident rate.

Fortunately the Luxury Tax too was lifted in October 1995 through an

ordinance of Governor and normal production was resumed. It had been a long

struggle with the entire unit displaying remarkable fortitude. Despite all

limitation even during this crisis Saharanpur was the largest manufacturer of the

30

Bingo Cigarettes like Scissors Std., Capstan Std., Berkeley Std., Bristol and

Hero and the exports like Huston and Midland (to USA) and Classic (to Russia).

In 1996 a Long Term Agreement between the management and the union

is another instance of continuous process in the history of ITC, Saharanpur. The

agreement provides the flexibility in work norms, practices and manning

ensuring world-class level of performance and productivity.

HISTORY OF SAHARANPUR

1925 : Cigarette manufacturing unit established.

1926 : Manufacturing of cigarette began & brands were Red Bird, Duck &

Peacock.

1935 : Packing Machines established.

1938 : Created cigarette workers union with the help of J.B.Miller & Pt.

Kamalnath.

31

1940 : First major strike came in practice.

1942 : The post of Labour Welfare Officer created.

1953 : First long term agreement marked signing.

1970 : Company got its name Indian Tobacco Company (ITC)

1983 : The computer center was set up in ITC SAHARANPUR unit.

1984 : An Integrated Factory Information System was developed at Bangalore.

1986 : The Technological training center was established.

1994 : High & Luxury tax was imposed on all branches of cigarettes

1995 : Saharanpur unit bagged British Safety Council National Award for its

low rate of accident.

32

ITC FAMILY

ITC PAPERBOARD LIMITED

India’s largest manufacture of paper & paperboard. It also a India’s

largest exporter of paper & paperboard industry.

ITC CLASSIC FINANCE LIMITED

It is Rs. 315Cr company which is established to offer preferred financial

services & products.

ITC AGRO-TECH LIMITED

33

Business processes edible oil & also moving towards consolidatig other

aspects of edible oil procurement, marketing & trading.

ITC FILTRONA LIMITED

A joint venture with filtrona international limited. UK is making available

in India the latest Cigarette filter technology including technology advance

multiple filters.

ITC ZENECA LIMITED

A unique partnership of two major players in agro-business, ITC with

ZENECA limited UK. It develops high quality seeds for the Indian agriculture

sector.

INTERNATIONAL TRAVEL HOUSE LIMITED

One of the India’s leading travel & tour agency offering services for

business & leisure travelers throughout India, in the business of “rent a car”

under the “Eurocar” brand& in the process of setting of golf resets of

International standards.

SURYA TOBACCO COMPANY LIMITED

34

ITC’s joint venture project in Nepal is the company’s largest private

sector corporation with brands leader in every segment. ITC has achieved the

“Super star trading house” status. It contributes over 4% of the revenue,

provides 9% of the Indian agri-export & about 2% of the company’s total export

centers total tax.

INDIAN TOBACCO DIVISION

It is India’s largest manufacture & exporter of cigarette. It has the market

share of 67% of the total cigarette market in India.

INDIAN LEAF TOBACCO DEVELOPMENT DIVISION

It’s the largest producer & exporter of tobacco in India.

ITC HOTELS LIMITED

A premier hotel chain catering to the International travelers. Its the

market & operates 16 leading hotel properties under the Welcome group banner.

It has the collaboration with ITC Sheraton USA for the International marketing

of the ITC hotels.

35

SWOT ANALYSIS OF THE ORGANIZATION

SWOT analysis is basically used as important technique through which a

company can know its positive features and can overcome its negative aspects.

Therefore SWOT analysis an important role to formulate the business

strategies for any company, which are based on its strength, weakness,

opportunity and threats. The SWOT analysis of its Ltd. can be done as under: -

STRENGTHS

1. The company product is a quality product.

2. Best pricing policy.

36

3. Good packing

4. Dedicated sales force

WEAKNESSES

1. The company has a small product profile.

2. The distribution network is very weak ITC biscuits are not available at

every shop.

3. It has less number of distributors as compared to its competitors.

4. It has poor distribution infrastructure.

5. Lack of frequent and regular trade schemes.

OPPORTUNITIES

1. The ITC should target the rural market also.

2. The new product can create a wide area of market.

3. A good distribution network can given tough competition to its

competitors.

THREATS

1. The aggressive nature of the competitors is the main threat to the

company.

2. The distribution network of its competitors is very strong.

37

3. Its competitors have more number of distributors.

4. The indirect reach of the company is too weak.

5. High tax rate.

6. Government policies.

38

BRITANNIA

Britannia is the market leader in the organized biscuit and bakery product

market in India. Biscuits contribute to more then 80% of Britannia's total

turnover. Other products include bread and cakes. Britannia diversified into

dairy products in 1997 with processed cheese and dairy whitener. The portfolio

was expanded with the launch of butter, pure, flavoured milk in tetra packs and

UHT milk.

History Of Company 1918

The Company was incorporated on 21stMarch, as a public limited

company under the Indian Companies Act, VII of 1913. The Company

39

Manufacture bakery and soybean products, export of cashew Kernels marine

products, general merchandise items and computer software.

1921

The Company obtained a priority of Certificate and imported new machinery

thereby becoming the first biscuit company in India to install and run a gas oven

plant.

1924

A new factory was established at Kasara pier Road in Mumbai. In the same year

the Company became a subsidiary of Peek, Frean & Co. Ltd. U.K. a leading

biscuit manufacturing company, and further strengthened its position by

expanding the factories at Calcutta and Mumbai .

1939-45

A Large part of the Company's production was diverted to war effort on account

of World War II and at times as much as 95% of the total capacity was booked

for the production of "Service Biscuit"

1952

The Calcutta Factory was shifted from Dum Dum to spacious grounds at

Taratola Road in the suburbs of Calcutta. During the same year automatic plants

were installed there and later in Mumbai in 1954.

40

1954

The development of high quality sliced and wrapped bread in India was

pioneered by the Company and was first manufactured at Delhi.

1961

Manufacture of bread was started in Mumbai and a new bread bakery was set up

at Delhi in 1965.

1976

Britannia bread was introduced in Calcutta and Chennai.

1978

After the issue of shares to the Indian public, the non –resident holding in the

Company was reduced to less than 40%.

1979

With effect from 3rd October, the name of the company was changed from the

Britannia biscuits Co., Ltd., to Britannia Industries Ltd.

1980

41

The company signed 10 years technical collaboration agreement with Nebico

Pvt. Ltd. Nepal, for the supply of know-how relating to manufacturing

packaging and marketing of biscuits and selection of plant and machinery.

1989

The Company launched new brand of biscuit, namely, 'CIRCUT'. Another

brand "PURE MAGIC" was extended nationally and posta badam was added to

"GOOD DAY" ranged of biscuits Bread production and affected for some time

at Delhi factory do to industrial unrest.

1991

The Company launched two new speciality brands viz. Britannia milk bread and

Britannia brown bread in Delhi and extended nationally its main brands petit

Burro and elaichi cream.

On 17th August the Company handed over to SM Dychem Ltd, its soya unit at

Vidisha, MP.

The Company proposed to invest in the equity capital of Britco Company Pvt.

Ltd. a joint venture with JMRPCO Ltd., Hong Kong, for manufacture of

beverage bases and essence for Coca Cola, Fanta & Sprite and to export

processed snack foods.

42

Competitive position

The entry of new MNC's have not posed a direct thereat to Britannia as

these MNC's have positioned their brands in the premium/health segment.

Britannia has maintained market leadership with a 40%volume share and 48%

value market share in the organized sector. FMCG major HLL is expected to

venture into the segment Britannia has been aggressive in new launches and

marketing during the last 2years anticipating the competition. It has also

recently acquired Quality Biscuits gaining a strong foothold in the southern

market.

Operating margins have been improving despite the fast pace of new

product launches in the last 2-3 years. Rationalization of manufacture operating

and greater contribution of higher margin diary products have both contribute to

the margin gains. Britannia has decided to hive off its diary business into a joint

venture with the New Zealand based Fonterra Cooperative Britannia and

Fonterra will each hold 49% of the Rs 2.25 bn. equity while the balance 2% will

be held by business associates.

Products of Britannia

Good day

Britannia 50-50

Hide and Seek

Cream Treat

Marrie Gold`

43

These are some popular brands of Britannia biscuits and there are other

various brands Britannia biscuits.

PRIYA GOLD

The wondrous magical journey of the company Surya Food &Agro Ltd

began in Oct. 1993& since then we have been one of the leading manufacturers

of biscuits in northern India, their brand "PRIYAGOLD'' has been a perennial

favorite since then. On a profound level the inevitable cycle of distribution

network has helped us to chart our way in western party of India as well. It is

our obsession to make the finest quality biscuits available to the consumer &it

has been our constant endeavor to give our consumer a palate to look forward to

a taste &flavor that is uniquely "PRIYAGOLD''. We have operated in the new

44

age sharply ruled by the dizzying pace of technology, poised to catch emerging

trends thus improving quality standards, where fully automated ovens bake the

biscuits round the clock and they find there way into automatic packing units at

the company's plant in Surajpur, Greater Noida (U.P.) to cater to the ever

growing demand of "PRIYAGOLD" biscuits. This thinking is reflected in what

our brand stands for "Haq Se Maango" a positioning that was formulated to

drive home the fact that everyone has the right to good taste &the right to ask

for it. We feel that the means to finding he future lies not just in believing about

tomorrow but in ourselves. What can never be destroyed like the eternal forces

of nature is our trust & confidence in ourselves. Thus empowered we have

ensured that "PRIYA GOLD" always strives hard to satisfy our esteemed

consumers. This compile flaunts the most cherished products that we have in

our "PRIYA GOLD" portfolio. Towards your good health, our efforts. Cherish

it with us.

Company believes that quality is of supreme importance, to the

consumer. Precisely why we never compromise on quality, Temperature, Light

and Humidity play a vital role in baking – all this is under control at our plant,

the worlds only biscuit plant which is 100% CFC free – climate controlled.

Hygiene standards for us cannot be compromised so the entire plant is

completely dust proof.

"Our commitment to our consumer is reflected in our commitment to the

quality of our product"

45

Products

Butter Bite

Cream Biscuits

Crackjack

Distribution Channel of Priya Gold

Company

C& F

46

Distributor

Salesman

Retailer

Customer

47

PARLE

INTRODUCTION

A long time ago, when the British ruled India, a small factory was set up

in the suburbs of Mumbai City, to manufacture sweets and toffees. The year

was 1929 and the market was dominated by famous international brands that

were imported freely. Despite the odds and unequal competition, this company

called Parle Products, survived and succeeded, by adhering to high quality and

improvising from time to time. A decade later, in 1939, Parle Products began

manufacturing biscuits, in addition to sweets and toffees. Having already

established a reputation for quality, the Parle brand name grew in strength with

this diversification. Parle Glucose and Parle Monaco were the first brands of

biscuits to be introduced, which later went on to become leading names for

great taste and quality. Did you know, how Parle fought to make biscuits

affordable, despite World War II. How Parle fought to make biscuits affordable

to all. Biscuits were very much a luxury food in India, when Parle began

production in 1939. Apart from Glucose and Monaco biscuits. Parle did offer a

wide variety of brands. However, during the Second World War, all domestic

biscuit production was diverted to assist the Indian soldiers in India and the Far

East. Apart from this, the shortage of wheat in these days, made Parle decide to

concentrate on the more popular brands, so that people could enjoy the price

benefits. Thankfully today, there's no dearth of gradients and the demand for

more premium brands is on the rise. That's why, we now have a wide range of

biscuits and mouthwatering confectionaries to offer. The strength of the Parle

48

Brand was over the years. Parle has grown to become a multi-million US Dollar

company. Many of the Parle products – biscuits or confectionaries, are market

leaders in their category and have won acclaim at the Monde selection, since

1971. Today, Parle enjoys a 40% share of the total biscuit market and a 15%

share of the total confectionary market, in India. The Parle Biscuit brands, such

as, Parle-G, Monaco and Krackjack and confectionery brands, such as, Melody,

Poppins, Mangobite and Kismi, enjoy a strong imagery and appeal amongst

consumers. Be it a big city or a remote village of India, the Parle name

symbolizes quality, health and great taste! And yet, we know that this reputation

has been built, by constantly innovating and catering to new tastes. This can be

seen by the success of new brands, such as, Hide & Seek, or the single twist

wrapping of Mango bite. In this way, by concentrating on consumer tastes and

preferences and emphasizing Research & Development, the Parle brand grows

from strength to strength.

The Quality Commitment:

Parle Products has one factory at Mumbai that manufactures biscuits &

confectioneries while another factory at Bahadurgarh, in Haryana manufactures

biscuits Apart from this, Parle has manufacturing facilities at Neemrana, in

Rajasthan and at Bangalore in Karnataka. The factories at Bahadurgarh and

Neemrana are the largest such manufacturing facilities in India. Parle Products

also has 14 manufacturing units for biscuits & 5 manufacturing units for

confectioneries, on contract. All these factories are located at strategic location,

so as to ensure a constant output & easy distribution. Each factory has state-of-

the-art machinery with automatic printing & packaging facilities. All Parle

49

products are manufactured under the most hygienic conditions. Great care is

exercised in the selection & quality control of raw materials, packaging

materials & rigid quality standards are ensured at every stage of the

manufacturing process. Every batch of biscuits & confectioneries are

thoroughly cheeked by expert staff, using the most modern equipment.

The Marketing Strength: The extensive distribution network, built over the

years. is a major strength for Parle Products. Parle biscuit & sweets are

available to consumers, even in the most remote places and in the smallest of

villages with a population of just 500. Parle has nearly 1,500 wholesalers,

entering to 4,25,000 retail outlets directly or indirectly. A two hundred strong

dedicated field force services these wholesalers & retailers. Additionally, there

are 31 depots and C&F agents supplying goods to the wide distribution

network. The parle marketing philosophy emphasizes catering to the masses.

We constantly endeavour at designing products that provide nutrition &fun to

the common man. Most Parle offerings are in the low & mid-range price

segments. This based on our cultivated understanding of the Indian consumer

psyche. The value-for-money positioning helps generate large sales volumes for

the products. However, Parle Products also manufactures a variety of premium

products for the up-market, urban consumers, and in this way, caters a range of

products to a variety of consumers.

The Customer Confidence

The Parle name conjures up fond memories across the length and

breadth of the country. After all, since 1929, the people of India have been

growing up Prale bicuits & sweets. Today, the Parle brands have found their

50

way into the hearts and homes of people all over India & abroad. Parle biscuits

and confectioneries continue to spread happiness & joy among people of all

ages. The consumer is the focus of all activities as Parle. Maximizing value to

consumers and forging enduring customer relationships are the core endeavors

Parle. Our efforts are driven towards maximizing customer satisfaction and this

is in

"Parle Products Limited will strive to provide consistently nutritious & quality

food products to meet consumers' satisfaction by using quality materials and by

adopting appropriate processes. To facilitate the above we will strive to

continuously train our employees and to provide them an open and participative

environment. "

Products

Parle –G

1. Kracjack

2. Monaco

3. Moria Choice

4. Hide & Seek

5. Fun Center

6. Cheese lings

7. Jeffs

8. Sixer

51

Distribution Channel of Parle

Company

Distributor

Salesman

Retailer

Customer

52

Anmol Bakers Ltd. Super Stockists Consignee Agents

Re-Distribution Stock

Retail Outlets

Consumer

ANMOL BAKERS LTD.

Anmol biscuits were introduced in Kolkatta in 1994 by Shri Baij Nath

Choudhary – A dynamic businessman, who has more than 20 year's experience

in biscuit manufacturing. He has never missed an opportunity to expand ever

since he introduced the Anmol brand with the result that Anmol has a capacity

of 500ft X4ft oven installed at Vill. Maitypara P.O. Dankuni, Hooghly in West

Bengal. Anmol Biscuits (P) Ltd. has its head office at 229 A.J.C. Bose Road,

6th floor, Crescent Tower, Kolkatta. Anmol biscuits become a grand success in

eastern part of the country on the sheer strength of its quality and technical

superiority. Anmol group has diversified interest also as they have Anmol

spices in Kolkatta, Coconut oil refinery and cement grinding plant in west

Bengal. Shri Chaudhary is joined by his 4 sons in entire business venture.

Spurred by the success of Anmol biscuits, Shri Baijnath Choudhary put up a

state of the art biscuit manufacturing unit at 38- A Udyog Vihar. Greater Noida

(U.P.), which is 272X4ft in size and Mr. Gobind Ram Chaudhary. One of the 4

sons Shri Bajinath Chaudhary. Anmol Bakers Ltd Has already introduced 17

sweet and salted biscuit varieties and has launched the product in 5 states of

North India, which is ever growing and very potential market for biscuits.

53

Distribution Channel of Anmol

Anmol Bakers Limited has 3 tier strong system of distribution. The

company has appointed 19 super stockists / consignee agents in the states of

Uttar Pradesh, Uttaranchal, Delhi, Haryana, Punjab & Rajasthan. Goods are

dispatched from the factory located at Greater Noida to various super stockists

and consignee agents who in turn dispatch the material further to re-distribution

stockist spread in towns & tehsils of above states. The re-distribution stockists

distribute the material to various outlets in their area from where these products

reach the ultimate consumer. The company is determined to enhance and

strengthen its already very strong distribution network of more than 450 re-

distribution stockists.

54

SUNFEAST – An Overview

ITC made its entry into the branded biscuits market on 28th July 2003

with the launch of the "Sunfeast" range of Biscuits in Kolkata and Hyderabad.

The initial range of offerings in the 'Glucose', 'Marie' and 'Cream' segments

provides both basic and value added options to the consumer. In keeping with

its commitment to delight the consumer, ITC's Foods business has introduced

two product innovations in its initial range of offerings. 'Orange Marie' and

'Butterscotch Cream' have been introduced for the first time in the Indian

market after months of research and extensive sampling across approximately

14,000 consumers. The 'Sunfeast' range will be launched nationally in phases in

over one million retail outlets in the country.

"Sunfeast" - the umbrella brand name introduced in the Glucose, Marie

and Cream segments

"Sun" mascot - the brand ambassador reinforcing the positioning of the

brand "Spread the Smile"

Product Innovation - two unique and new flavours - for the first time in

the India market- Orange Marie and Butterscotch Cream biscuit

"Sunfeast" - to be launched nationally in phases in over One million

retail outlets across the country.

Kolkata - July 30, 2003: ITC's Foods business today announced the

launch of the "Sunfeast" range of high quality and great tasting biscuits

with offerings in Glucose, Marie and Cream segments. Speaking on the

occasion, Mr. Ravi Naware, Divisional Chief Executive, ITC Limited

- Foods Division said, "the launch of "Sunfeast", marks ITC Foods entry

55

into the branded biscuit market with a range of offerings in both basic and

value added segments."

"Sunfeast", with the Brand Essence "Spread the Smile" connotes

happiness, contentment, satisfaction and pleasure one would derive from

great tasting and high quality biscuits. The brand positioning and imagery

is reinforced by the Sun mascot conveying the emotional and gratifying

aspects of the product.

"The latest offering from ITC Foods is in tune with the company's

strategic direction to develop new product lines by synergising its proven

competencies. We believe that our understanding of the Indian consumer

is reflected in the increasing confidence in the "ITC" brand and more

importantly the trust that Indian consumers are reposing in all our

products" added Mr. Naware.

"Sunfeast" range of biscuits is competitively priced and would include

two new product innovations - Orange flavored Marie and Butterscotch

flavored Cream biscuits launched for the first time in the Indian market.

"Sunfeast Biscuits" - Initial Offerings

Sunfeast Glucose Biscuits deliver the Natural Goodness of Wheat and is

available in 100gms, 75gms and 19gms priced at Rs4/-, Rs3/- and Re 1/-

respectively targeting children between the age group 4-14 years and their

mothers.

Sunfeast Orange Marie - a very differential offering is available in

200gms, priced at Rs13/- and "Sunfeast Marie Light" - Light & Crispy,

available in 200gms and 400gms, priced at Rs13/- and Rs19/-

respectively targeting housewives and families.

56

Sunfeast Orange Cream, Sunfeast Butterscotch Cream & Sunfeast

Bourbon Cream - Smooth & Yummy Cream Biscuits, available in

100gms, priced at Rs10/-, Rs10/- and Rs12/- respectively targeting

children between the age group 4-14 years.

ITC Limited - Foods Division, being in the forefront of product

innovation has introduced two new flavours Orange Marie and

Butterscotch Cream Biscuits after 12 months of product research and

development and extensive sampling across 14,000 consumers across all

POP first time in the Indian market. the entire range of "Sunfeast

Biscuits" will be packed in vibrant colours, distinctive graphics and fonts

identifying sub categories - at the same time maintaining a consistent

look of the umbrella brand "Sunfeast".

57

PROLECT PLAN IN TERMS OF FIELD

STUDY OF THE PROJECT

The entire project activity was divided into weekly milestone to ensure the

following:

58

Complete framework of the project

Completion of the project on time

To be economize on time

To make continuity of the project

Timely completion of the weekly schedules

WEEK- 1

Visiting the marketing branch of ITC.

Meeting the project guide to make a scheduled plan for the coming week.

Visiting WD(wholesale dealer) point of ITC to know their working

process.

WEEK-2

Making a general survey of the market (wholesaler, retailer& customer)

to find out the top selling brands with in which the study has to be done.

59

Five brands came in picture which are most operating brands in the

market along with two brands which operates only in some areas of

Saharanpur.

WEEK-3

Designing a questionnaire to get information regarding the top selling

brand out of the chosen five brands.

Divided Saharanpur in four zones to cover one area in one week.

WEEK- 4

Interviewed retailers, wholesalers & consumers in first zones which

covers the following areas- Avas vikas, Court road, Mission

compound, Hakikat nagar, Naveen nagar, Tarawati road, Chander

Nagar, Janakpuri.

WEEK-5

Interviewed retailers, consumers & wholesalers in second zone which

covers the following areas- Sharda nagar, Patel nagar, Gurudwara

road,& Ambala road, Khalasi line, Govind nagar.

60

WEEK-6

Interviewed retailers, consumers & wholesalers in third zone which

covers the following areas- Numaish Camp, Madho Nagar,Behatadda,

Matia mahal, Bhagat singh chowk, Raiwala, Chilkana road.

WEEK-7

Interviewed retailers, consumers & wholesalers in fourth zone which

covers the following areas- Nakhasa Bazar, Rani Bazar, Naya bazaar,

More Ganj, Sahid Ganj, Kakkar Ganj.

WEEK-8

Analysis & interpretations

Suggestions & Recommendations.

61

INTRODUCTION OF RESEARCH

This chapter focuses on the methodology and the techniques used for the

collection, classification and tabulation of data. It sheds light on the research

problem the objective of the study its limitations and the hypothesis that have

evolved for the study. The later part of the chapter explains the manner in which

the data is collected, classified, tabulated and analyzed so asto reach to

conclusive results.

62

Research Methodology has many dimension, it includes not only the

research methods but also considers the logic behind the methods used in the

context of the study and explains why only a particular method or technique has

been used so that search lend themselves to proper evaluation. Thus in a way it

is a written game-plan for concluding research. Therefore in to design a

research problem it is necessary to design a research methodology for the

problem as the same may differ from problem to problem.

OBJECTIVES & SCOPE OF THE STUDY

On the basis of my study objectives and scope of the study is as follows :

? To study the brand preferences for different Biscuits.

? To find the extent of brand loyalty that exists among different Biscuit

brands.

? To study the influence of various aspects on buying behaviour and to

conduct a comparative analysis across different respondents.

? To estimate the Biscuit industry in Saharanpur Area.

63

? To bifurcate the Biscuit Industry on the basis of their success factors.

? Understanding of the distribution system at different WD points.

? Collection of date regarding industry figured key players, availabilities

schemes etc. by carrying out a detail market survey.

? Collection of data and representing them graphically.

? To analyse the data collected the according to it cater some

recommendations.

? To suggest the distribution system for ITC and to point out the strong

points of it .

? To point out the Trade Increasing schemes.

Research Description

HYPOTHECATION OF THE STUDY

Hypothesis is considered as the principal instrument in research. It

enables to make probability statement about population parameters.

The study will be conducted under the broad framework of the following

Hypothecation.

1. Buyer's (customers) give equal importance to different factors while

deciding about the purchase of biscuits.

64

2. Buyers consider price.

3. Different media knowledge and in influencing the buyer.

4. Friends generally influence the idea of having biscuits.

5. Children at home are a major factor in deciding a particular brand of

biscuit.

SCOPE OF STUDY :

The scope of study has been limited to sample size of 140 Retailers due to

the time and the cost constraints. However, the scope of the study with respect

to geographical area is restricted to the city of Saharanpur.

NATURE OF STUDY :

It is an exploratory research and the basic aim of exploratory research is

to gain familiarity with the phenomena or to achieve new insights into it. So the

study has tried to find out the psychograph of the consumer and to find, who

have the maximum influence on the decision making of the consumers.

RESEARCH DESIGN

To study the consumer behaviour with respect to Brand Preference in

Different Brands of Biscuit sample survey method has been chosen sample

65

survey method has been chosen because of its benefits over other methods. It

allows direct contact with the customer and therefore customer psycho can be

studied more efficiently.

To collect data a number of techniques are employed under the sample

survey method like questionnaire, observation and interview schedule. The

increasing of questionnaire and schedule it probably due to increased emphasis

by social scientists on quantitative measurements to uniformly accumulated

data.

SELECTION OF SAMPLE

Social phenomenon being very vat, it becomes impossible to contact each

and every individual of the population due to limitations of essential resources

like time and money. Therefore, the study is preferable borrowed down to a

representative sample to make the study more manageable.

Keeping in view of the objectives and resource limitations of the study,

samples of 140 retailers were considered.

The selected sample is representative of the population and is accurate

and practicable.

SAMPLING PLAN

The following factors have to be decided with in the scope of sampling

plan.

1. SAMPLING UNIT

66

First step in developing any sample design as to clearly define the set of

objectives technically called the universe to be studied. The universe can be

finite or infinite. My universe was finite as I opted for specific city Saharanpur.

2. SAMPLE SIZE :

This refers to the people surveyed although large samples are more

reliable but due to shortage of time and money a small representative of 140

retailers were chosen.

3. SAMPLING PROCEDURE :

This refers to procedure by which respondents should be chosen. In order

to obtain a representative sample a probability sample of population was drawn.

Probability sampling can be of following types: -

Simple Random Sampling

Stratified Random Sampling

Cluster (Area) Sampling

In this case stratified random sampling was done since respondents were

classified into well define classes or strata that were distinct from each other.

4. SAMPLE DESIGN :

Because the primary sampling unit represented a cluster of unit based on

geographic area of Saharanpur.

COLLECTION OF DATA

67

After the research problem has been defined and the research design has

been chalked out, the task of data collection begins. The dara can be collected

mainly through primary sources, but it was supplemented by secondary data.

For the collection of primary data, the respondents were contacted

personally and the research instrument used for gathering data was the

questionnaire. To get further insight into the research problem, interview

regarding their buying practices too was made. This was done to cross check the

authenticity of the data provided.

To supplement the primary data and to facilitate the process of drawing

inferences secondary data was collected from published sources like magazines

journals, newspapers etc.

FORMATION OF QUESTIONNAIRE

Quite often the questionnaire is considered as the heart of a survey

operation. Hence it should be carefully constructed It is an investment that is

widely used to collect various types of data and consists of long fists of

questions designed to collected any information. It has personally been and that

people are more frank in giving replies to a questionnaire than to an interview

schedule. Though being less expensive, it has certain limitations like incomplete

entries and incomplete responses. But the educational qualification of the

respondents is an additional factor by which this technique the most relied upon.

Formation of a good questionnaire involves intensive thinking and

deliberation of the problem with predetermined objectives and aims properly

placed in the questionnaires. In the words of Goode & Halt. "in general, the

word questionnaire refers to a device for securing answers to questions by using

68

a form which the respondent fills in himself". All the questions in a

questionnaire are framed with a specific objective in mind and all placed in a

logical, sequential order.

ANALYSIS OF DATA

Data, after collection, has to be analysed in accordance will the outline

laid for the purpose at the time of developing the research plan. The term

analysis refers to the computation of certain measures along with searching for

patterns of relationship that exist among data groups Data presented in state

appears unrecognized and complex. Statistical processors are used to read this

complex data into some significant understandable form. The method of data

analysis methods procedures for classifications, ending, tabulation an statistical

analysis of raw data.

CLASSIFICATION OF DATA

It refers to the process of arranging data into homogeneous classes

subsequent to the collection of data, the results were sorted out and arranged in

different categories.

TABULATION OF DATA :

After classification and coding data is arranged in the form of tables also

and fit chart being used. Tabulation is therefore, arrangement of data in columns

and rows. After the research problems has been defined and the research design

has been chalked out, the task of data collection begins. The data can be

69

collected from primary and secondary sources. The basic premises of my study

are primary data but at the same time it is supplement with the secondary data.

Random sample that was representative of the target market was chosen, the

respondents were contacted personally and the research instrument used for

gathering data was the questionnaire. To get further insight into the research

problem interview regarding these buying practices too was made.

PROBLEM FORMULATION

ITC Ltd has to launch a new product biscuits under its fmcg range of

products. For this purpose a lot of research was going on in many parts of north

India. So Saharanpur area was given to me to do the research work.

70

This research is basically done to explore the biscuit market of

Saharanpur. So, that the company can design its product according to the market

& demand of the customers & consumers in the market. This study should entail

many things like which are the major operating brands of biscuit in the market,

who are the major companies operating in the market of Saharanpur, what are

the distribution norms & practices & above all what are the various trade

schemes on the product in the market of Saharanpur.

The study should cover all important element of the market, which give

useful information to ITC for the launch of its biscuit in the market of

Saharanpur.

RESEARCH PROPOSAL

Following were interviewed in the course of the study to gather the

information to fulfill the stated objectives: -

71

Retailers (grocers, convenience stores, tea stalls & restaurants)

Wholesalers

Consumers & customers

SAMPLE SIZE

RETAILORS : 90

CONSUMERS : 40

WHOLESELEERS : 10

DISTRIBUTORS : 05

72

ANALYSIS & INTERPRETATION

The data which is collected through the questionnaire is analyzed and

interpretation is given on the basic of analysis.

1. AVERAGE QUANITY OF BISCUIT SOLD BY THE RETAILERS IN

TERMS OF QUANTITY PER MONTH

COMPANIES SALES IN PACKETS

PARLE 2000

PRIYAGOLD 1800

BRITANNIA 1500

ANMOL 1000

APSARA 800

OTHERS 400

73

COMPANIES SALES IN RUPEES

PARLE 1000000

PRIYAGOLD 900000

BRITANNIA 700000

ANMOL 500000

APSARA 300000

OTHERS 200000

AVERAGE SALES PER MONTH

0

500

1000

1500

2000

2500

BRITANNIA PARLE PRIYAGOLD APSARA ANMOL OTHERS NAME OF THE COMPANIES

SALES IN TERMS OF PACKS Series1

2. AVERAGE QUANITY OF BISCUIT SOLD BY THE DISTRIBUTORS

IN TERMS OF RUPEES PER MONTH

74

SALES BY DISTRIBUTORS IN RUPEES PER MONTH

0

200000

400000

600000

800000

1000000

1200000

Parle

Priya G

old

Brita

nnia

Anm

ol

Apsara

Oth

ers

NAME OF COMPANY

SA

LE I

N R

UP

EE

Series1

75

30.22%

26.88%

3. MARKET SHARE OF THE BISCUIT COMPANIES ON THE BASES

OF THE CONSUMER SURVEY

NAME OF THE COMPANY PERCENTAGE OF MARKET SHARE

PARLE 30.22%

PRIYAGOLD 26.88%

BRITANNIA 22.40%

ANMOL 13.60%

APSARA 5%

OTHERS 2%

PERCENTAGE OF MARKET SHARE

PARLE

PRIYAGOLD

BRITANNIA

ANMOL

APSARA

OTHERS

76

INTERPRETATION OF THE DATA

As the above data shows that biscuit company in the Saharanpur is a very

competitive one. As far as the big operators are concern PARLE leads the

market with each having 30.22% PRIYAGOLD which is the next most

operating brand in the market. BUTTER-BITE of PRIYAGOLD is one & the

only operating brand of PRIYAGOLD. Family pack of this company is the

leading brand due to its quality & low price having 26.88% market share

following BRITANNIA with 22.40%. In the deapth of both these brands its

PARLE-G, MONACO & KRACKJACK is the leaders for the PARLE, and

it’s the MONACO, FIFTY-FIFTY & MASKSA CHASKA is the

BRITANNIA competitive operating products for the PARLE.

As the data also shows that PARLE & PRIYA GOLD is in stiff

competition with each other even in the rural areas of Saharanpur biscuit is

known as PARLE-G.

77

On the other hand, it’s the PRIYAGOLD which is the next most

operating brand in the market. BUTTER-BITE of PRIYAGOLD is one & the

only operating brand of PRIYAGOLD. Family pack of this company is the

leading brand due to its quality & low price. ANMOL can also not to be

ignored with market share of about 13.60%. As far as others brands as

concerned it’s the CREMICA & SWEET-HOME as they covers only the 4% of

the total market. They operate only in the backward areas of the Saharanpur due

to their cheap products APSARA is the yet another brand with about 5% share

in the Saharanpur biscuit company.

4. Do you prefer any specific brand, give reasons for the brand

preference?

BRAND PREFERNCE ON THE BASIS OF CONSUMER SURVEY

YES 65%

NO 35%

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BRAND PREFERNCE BY THE CONSUMERS

YES

NO

79

INTERPRETATATION OF THE DATA

As the data above tells that the percentage of the Brand loyal consumers

are very low. This is just because of the competition in the market. Each

company has its own advantage, schemes, quality & taste. This causes

consumers to migrate towards a new product, each tome they visit the shop.

The most appropriate reason for the brand preference by the consumers is

PRICE. About 25% consumers go for the quality for the brand preference. And

only about 20% of those go for the QUALITY. 23% of the consumers go for the

TASTE. 10% & 5% of the total consumers goes for the ADVERTISEMENT &

PACKING respectively. Only about 7% & 10% of the total consumers goes for

AVILABILTY & SCHEMES on the product respectively. This data clearly tell

us the competitive situation of the Biscuit industry.

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REASONS FOR BRAND PRERENCE

0

5

10

15

20

25

Brand Preference Reasons

Price

Quality

Advertisement

Packing

Taste

Availibility

Schemes

81

5. Does Promotional Activity affect the sale of products in the

market?

YES 69%

NO 31%

CONSUMER OPINION ON PROMOTIONAL ACTIVITY

YES

NO

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CASH W 25%

DISCOUNT R 17%

CREDIT W 20%

POLICY R 22%

REPLACEMENT W 20%

R 30%

FAST SERVICE W 18%

R 10%

SCHEMES W 17%

R 21%

INTERPRETATION

At the data above shows that, out of the total consumers surveyed a major

portion of them are in favor that promotional activities like tour to world cop,

free trips & other awards increase the sale of the biscuit in the market. On the

other hand, about 31% of the consumers are against them. Most of them are

brand loyal.

6. WHICH IS THE MOST

COMMONLY USED

DISTRIBUTION PRACTCE

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DISTRIBUTION PRACTICE USED BY WOLESALLER & RETILER

0%5%

10%15%20%25%30%35%

W R W R W R W R W R

CASHDISCOUNT

CREDIT REPLACEMENT FAST SERVICE SCHEMES

DIFFERENT PRACTICES USED

PE

RC

EN

TA

GE

US

ED

Series2

84

KEY PLAYERS IN SAHARANPUR ESTIMATED % AS

PER FIGURES GIVEN BY DISTRIBUTORS :

Organized National Players Unorganized Regional &

Local Players

65% 35%

Britannia Anmol

Priya Gold Apsara

Parle Others

UnorganizedRegional &Local Players35%

OrganizedNationalPlayers 65%

85

Findings

Graphical and analytical representation above shows organized sector has less

market share that is 35% as compare to unorganised sector has hold 65% of

market share on same pattern of whole Indian market.

86

Q.1 What is Sales Bifurcation at different sale points?

Provision stores Confectioners Tea stall

1-3 pkt. 15% 8% 50%

3-6 pkt. 35% 20% 20%

Above 6 pkt. 50% 72% 30%

0

20

40

60

80

%

Prov. Stores Confectioners Tea Stalls

Sales Bifurcation

1-3 Pkt

3-6 Pkt

>6 Pkt

Findings

The data in table above and graphical representation reveals that at

provision stores 1-3 Pkt. sale is 15%, 3-6 Pkt. sales is 35%, above 6 pkt. sales is

50% at confectioners there are 72% sale of above 6 pkt., 20% of 3-6 pkt. and

8% sale of 1-3 pkt. and at tea stall 50% sale is of 1-3 pkt., 20% sale of 3-6 pkt.

and 30% sale is of above 6 pkt.

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Q.2. Would customer is ready to pay higher cost for the good quality?

Response %age of Respondents

Yes 75

No 25

0

20

40

60

80

%age

Response

Response for Quality

Yes

No

Findings

Graphical and tabular representation of my survey reveals that according to

75% of dealers customer is ready to pay higher cost for the good quality and

25% says no, customer is not ready to pay higher cost for the good quality.

88

Q.3. Whether customer is ready to changeover to another brand when

there is some sort of schemes of More weight on same price or some free

gift along with it?

Response %age of Respondents

Yes 75

No 25

%age of Respondents

Yes

No

89

Findings

Tabular and Pie Representation above shows 75% of dealers agrees that

customer is ready to changeover to another brand because of various schemes

and 25% are also there who says no, customer will strict on their own brand.

90

Q.4. What should be the promotional Scheme?

Schemes % age of Respondents

Gifts 10

Prize Coupons 25

Discount 25

Good Commission 30

Extra quantity 10

30

25

20

15

10

5

0

Gifts Prize Discount Good Extra quantity

Coupons Schemes commission

Findings

30% of respondents says company should provide them good

commission. 25% of respondents says discount and prize coupons respectively.

10% of them demanded attractive gifts should be given to them by company

and rest 10% says extra quantity.

91

Q.5. In your opinion do the advertisement of a particular brand does

attract the customer?

Response % age of Respondents

Yes 70

No 30

No

Yes

0 10 20 30 40 50 60 70

%age of Respondents

Findings

In the opinion of 70% of my respondents advertisement of particular brand

attract the customer and 30% says no advertisement doesn't attract the customer.

92

Q.6. Whether advertisement of a particular brand changes consumer

loyalty to other brand?

Response % age of Respondents

Yes 55

No 45

No

Yes

0 10 20 30 40 50 60

% age of Respondents

Findings

In survey conducted by me, in the opinion of 55% of my respondents

advertisement of particular brand change the consumer's loyalty to other brand

and 45% says no advertisement doesn't make any effect on consumer's choice.

93

FINDINGS

94

On the basis of my study, some findings are as follows:

In my survey I found, maximum confectioners deals in Parle because of its

quality maximum number of customers wants it.

Parle has good presence in convenient stores/provisional stores .In posh has

also strong presence.

Anmol, Apsara and other local brands mostly available with tea-stalls

provision stores because of more margin and supply at every corner of the

city.

Priya Gold and Anmol biscuits have less advertisement, which is the source

of information for mass, where as Britannia has widely spread advertising

campaign so it is a word of mouth for the people.

ITC advertisement of sunfeast Biscuit must be shown repeatedly (again &

again) and also which may attract children mostly.

The total success in biscuits industry depends on the

a). Sales force

b). Regular Supply

c). Quality of the productions

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LIMITATIONS AND PROBLEMS

Although sincere efforts were made to collect maximum information

from the respondents even then this report is subject to following limitations

and problems.

1. Due to constraints of money it was difficult to cover all the area of

Saharanpur.

2. The sample selected by the research was of 140 retailers so due to a small

sample out of a big universe, the results may not be completely correct.

96

3. Some if the respondents though me as representative, hence instead of

answering my question they put their question to me and expected me to

answer them.

4. The people were quite hesitant inquiring exact data regarding their

income level.

5. In today's materialistic world people want return on queering something.

6. Co-operation of respondents. This has been a major problem. People were

reluctant to fill the questionnaire or face the interview.

97

CONCLUSIONS

The main reason behind choosing this topic for conducting research to

know about Estimate Biscuit Industry and identify the critical success

factor in Saharanpur for ITC. This is very important in increasing the sale

of a product. Infact, knowing consumer perception is regarded as

essential tools in the growth and expansion of the company. The brand

preference can motivate the consumer to purchase a large quantity of a

brand. It helps the company in differentiating their products from another

companies.

After doing my survey in various biscuits brands in Saharanpur. I did find

that most retailers have Priya Gold, Parle and Britannia biscuit in their

shops. According to my survey the demand of Parle is being found almost

higher than other brands. Secondly Priya Gold is demanded most, but the

98

Britannia demand is going down. Hence mostly customer prefer feature

of product and Brand Name.

In the last I can say that in Saharanpur city there can be a more scope of

ITC Sunfeast biscuit. Company should come up with more advertisement

through the wall paintings and in local newspaper to catch attention of

consumers.

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SUGGESTIONS

&

RECOMMENDATIONS

A few recommendations on the basis of the findings of survey are as follows :

Supply of biscuits should be regulated at various WD points and

retailers.

More advertisement should be given in the local newspaper to catch media

as well as public attention.

Regular supply of the items should be properly mantained by enhancing

supply chain network.

Quality of the product should be unmatched, some thing innovative need to

be done to make biscuits life long.

The best way to push sales is to give higher margin to retailer as compared to

competitors as they act as opinion leaders for consumers.

Promotion schemes for both traders and consumers should be there it may

include Incentives to traders on fixed volume of sales and Schemes during

10

special occasions like cricket matches and tourist season should be launched

in terms of gift-hampers coupons to enhance sale.

Wall paintings.

Attractive margin for retailers.

10

LEARNING EXPERIENCE DURING THE TRAINING

My, project entitled estimate the biscuit industry and identify the critical

success factor was given to me for my summer training in I.T.C. It has been a

great experience, while during a training in Saharanpur city. In, my life it was

my first experience to get people know of different categories through

interviewing and getting fill up questionnaires from them. After doing my

survey, I learnt that at each and every level their is a compitition.

GAINS

1. The first and main thing I learnt about the distribution channel of different

companies of biscuits.

2. About handling the work force.

3. How to get people convince for buying the product.

4. How to increase the sales force.

5. About the current situation of market condition.

LOSS

1. During the training some if the sample respondents does not give their

full information and also hesitate to fill up the Questionnaires.

2. The sample selected by the research was of 140 retailers so due to a small

sample out o a big universe, the results may not be completely correct.

It was too hot, outside, and places were far from each other.

10

BIBLIOGRAPHY

10

Kothari C.R., Research Methodology, Methods & Techniques (Second

Edition)

Kooper, Research Methodology

Kotler Philip, The Marketing Management (The Millennium Edition)

Chhabra T.N. Marketing Management

Website of different Companies

Magazines :-

1. Pukar, I.T.C. Ltd.

2. E & S Magazine, I.T.C. Ltd.

3. The EHS Magazine, I.t.C. Ltd.

News Papers

1. I.T.C. News

2. The Economic Times

10

QUESTIONNAIRE (DISTRIBUTOR)

NAME OF THE OWNER :

NAME OF THE SHOP :

ADDRESS :

(C & F) :

10

1. What is the Infrastructure?

2. What is your frequency?

a. Daily b. Weekly c. Monthly

3. What is a No. of Beat (Route)?

4. What is your credit facility for retailers?

a. Weekly Basis b. Monthly Basis

5. What is your Coverage plan in the Market?

6. What are your Brands name and stock keeping unit?

10

7. Turnover monthly about?

8. How much margin you give to retailers?

a. Less than 10% b. 10 to 15%

c. 15% to 20% d. Above 20%

QUESTIONNAIRE FOR WHOLESALLER AND

RETAILER

NAME OF THE FIRM --------------------------

10

ADDRESS OF THE FIRM --------------------------

1. Which brand/s of biscuit do you often sell?

Britannia Parle Priyagold

Apsara Anmol Cremica

Amulya Any other (please specify) ____________

2. How much quantity do you sell in a week?

In terms of quantity____________________________________

In terms of rupees ____________________________________

3. Which is the most operating brand/s in the market according to you?

___________________________________________

4. What is the most appropriate reason for its success ?

QUALITY EASY AVILABILTY TASTE

10

PRICE ADVERTISEMENT PACKING

ANY OTHER ______________________

5. What is most commonly used channel of distribution?

__________________________________________

6. What is the most commonly used distribution practice by you

Fast service Credit Replacement

Cash Discount Any Other (please specify) __________

7. Are you fully satisfied with is most operating brand in the market

YES NO

8. If no, give suggestion for the improvement of the brand.

________________________________________________

10

9. Do you provide any promotional activity to your consumers.

YES NO

10. Give suggestions for the success of a new product to be launched in

the market.

_____________________________________________________________

_____________________________________________________________

_____________________________________________________________