SUMMER TRAINING PROJECT REPORT ON “SALES & DISTRIBUTION” Submitted towards the partial fulfillment of requirements of U.P. Technical University, Lucknow for the award of Master of Business administration (M.B.A) Session (2010-11) Submitted by NEERAJ CHAUHAN MBA –III semester ROLL-NO.0922970036 1
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SUMMER TRAINING PROJECT REPORT
ON
“SALES & DISTRIBUTION”
Submitted towards the partial fulfillment of requirements
of U.P. Technical University, Lucknow for the award of
Master of Business administration (M.B.A)
Session (2010-11)
Submitted by
NEERAJ CHAUHAN
MBA –III semester
ROLL-NO.0922970036
VIDYA COLLEGE OF ENGINEERING
BAGPAT ROAD, MEERUT
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VIDYA COLLEGE OF ENGINEERING
CERTIFICATE
This is to certify that Mr. NEERAJ CHAUHAN has gone through compulsory Summer
Internship Training as a part of MBA Course programme in ITC Limited Saharanpur during
June-July 2010.He has worked on the summer training project titled “SALES &
DISTRIBUTION OF AASHIRWAD FLOUR IN THE SAHARANPUR CITY”.
DATE HOD/Director
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ACKNOWLEDGEMENT
A work is never a work of individual. I owe a sense of gratitude to the intelligence & cooperation
of those people who had been so easy to let me understand what I need from time to time for
completion of this exclusive project.
I want to express my gratitude towards Mr. SIDDARTH KALRA Marketing Manager of
ITC for giving me an opportunity to complete this project.
This project is due to the experience and knowledge of several people. Though I am unable
to mention all of them individually, any debt or gratitude to them is not less.
I am very thankful to the ITC for the facilities provided to me to complete my project work.
NEERAJCHAUHAN
VIDYA COLLEGE OF ENGINEERING
ROLL NO- 0922970036
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TABLE OF CONTENT
S.NO TOPIC PAGE NO.
1. PREFACE 7
2. INTRODUCTION OF THE COMPANY 9
3. ORGANAZITIONAL STRUCTURE 28
4. PRODUCTS OF THE COMPANY 36
5. PERFORMANCE OF THE COMPANY 56
6. CHALLENGES FACED BY ITC 61
7. RESEARCH PROBLEM 65
8. SCOPE AND OBJECTIVE 68
9. REVIEW OF LITERATURE 70
10. HYPOTHESIS 73
11. RESEARCH DESIGN 75
12. COLLECTION OF DATA 79
13. ANALYSIS OF DATA 81
14. INTERPRETATION OF DATA 84
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15. FINDI NG 96
16. CONCLUSION 98
17. SUGGESTION 100
18. LIMITATION 102
19. ANNEXURE 104
20. BIBLIOGRAPHY 108
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PREFACE
To start a business the success depends upon the research done about the particular & consumer
attitude the product. Marketing research plays a vital role in a business to make it successful. I
tried to put my best effort to complete the task on the basis of skills. I am having this study done
about the flour sales & distribution in the city of different companies. In order to know about the
opportunities in the mareket.Inthe study, an attempt is made to cover every expect of these
objectives to find out solutions for the company.
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COMPANY OVERVIEW
ITC is one of the India`s foremost private sector companies with a market capitazation of nearly US $ 15 billion & a turnover of US
$ 6 billion. Rated among the World`s Leading Companies by Forbes manazine, ITC ranks third
in pre-tax profit among India`s private
Sector corpoiration.ITC has a diversified presence in Cigarettes, Hotels, Paperboard & Specialty
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire
value chain found yet another expression in the Safety Matches initiative. ITC now markets
popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.
FOOD-
ITC's foray into the Foods business is an outstanding example of successfully blending
multiple internal competencies to create a new driver of business growth. It began in August
2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002,
ITC entered the confectionery and staples segments with the launch of the brands mint-o and
Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of
Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded
snacks category with Bingo! in 2007. In just seven years, the Foods business has grown to a
significant size with over 200 differentiated products under six distinctive brands, with an
enviable distribution reach, a rapidly growing market share and a solid market standing.
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.
ITC’S MINTO mouth freshener is emerging as a recognizing brand apart from rival
PREFETTI’S HALLS. A blend of effective distribution, aggressive trade level activity and
consistent marketing efforts have helped the business to gain a substantial market share in this
segment.
Competitors:
Britannia
Parle
Priyagold
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IMPROVEMENTS NEEDED:
The steady growth of the company is satisfactory since it had launched late in the market but the
significant growth in the product is amazing. In my view company should concentrate on the
brands by adding more flavors. for attracting kids company can introduce free gift items like
what lays had done previously when it had introduce tazo’s. During the research it is fund that
some retailers are not getting product due to the reasons like shortage, no approach of salesman
etc so being new in the market we have to firstly satisfy 4P’s to get success.
Agarbattis (incense sticks) –
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include
superia and Mangaldeep
across a range of
fragrances like Rose,
Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and
Nagchampa. The Expressions range of Aromatic candles
comprises Amour - the Romance Series, Adora - the Decor
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Personal Care-
ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body
care products for men and women in July 2005. Inizio, the signature range under Essenza Di
Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme)
and women (Inizio Femme). Continuing with its tradition of bringing world class products to
Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos,
Shower Gels and Soaps in September, October and December 2007 respectively. The Company
also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select
markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel
range of shampoos in June 2008.
The 'Fiama Di Wills' range of shampoos and shower gels are now available at all major markets.
The company has recently launched Fiama Di Wills Polishing Drops (conditioner), which is
enriched with Avocado Oil and Burdock extract to make the hair feel smooth and shiny. These
superior products are an outcome of years of R & D based product development. They reflect
ITC's deep consumer insight.
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COMPETITORS:
The company had entered this segment very late; the market is still dominated by GARNIER and
L’OREAL with HINDUSTAN UNILEVER, PROCTOR AND GAMBLE and COLGATE
PALMOLIVE just behind them. It would be a matter of time for ITC to show its presence, since
it had become a name of trust among the people of India.
CONCLUSION:
As per the company introduction of soap and shampoo’s, it can move on with the introduction of
cosmetics to the Indian market. It need to do more efforts in order to raise the sale of personal
products because products other than superia are not doing well.
Education & Stationery Products –
ITC made its entry into the stationery business in the year 2002 with its premium range of
notebooks, followed in the year 2003 with the more popular range to augment its offering. ITC’s
stationery Brands are marketed as “Classmate” and “Paperkraft”, with Classmate addressing
the needs of students and Paperkraft targeted towards college students and executives.
Classmate Fun N Learn , Classmate Invento , Classmate pens, Paperkraft are the
stationery products of ITC.
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COMPETITORS:
The major competitor of ITC in this field is NAVNEET publication whose notebooks are
very popular among people.
CONTRIBUTION IN THE MARKET:
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The Classmate brand alone contributes about Rs 150 crore. Data estimates the market for
school and education sector at Rs 5,000 crore. Classmate lack behind the variety if compared to
Navneet publications. With the introduction of more varieties it can be a market leader.
The GREETING CARD section includes EXPRESSION greeting card which are gaining
huge popularity among the people .The main reasons behind is that they are available I wide
range apart from ARCHIE’S and HALLMARK which are very expensive.
The company can have a growth in this segment because of its quality in its brand and at a
reasonable price. On the other hand hallmark is charging more because of its brand name. The
card can be of wider acceptance if remain in same price range.
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FINANCIAL PERFORMANCE
In total sales of the ITC, FMCG division enjoys maximum share. FMCG is having the maximum
sales and that too in cigrate manufacturing in which company is a national player and oldest in
this manufacturing field.
The company is having negative profits in FMCG-other than cigrate as company has just
entered in this segment ,inspite of this, company is having 83.46% growth in it and loss
company is having in its.
FMCG-other than cigrate is all due to initial investment in sales and administration expenses in
this division.
In agricultural division company net sales has lowered down but the overall profit i.e PBT has
increased by 98.30% which shows the division has been able to maintain its below the line
expenditures i.e selling and administration expenses.
About hotel business, company is having loss in it and all this is because of that terrorist attack
in Mumbai on Taj hotel last year which has shaken the faith of public and also a step reduction in
international travel as a fallout of the global economic crisis has triggered a significant slide in
occupancies and average room rates and the company has to bear a loss in the of month of
September 2009.
In paper and paper boards Business Company is having 12% growth in PBT.
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Ten Years at a Glance
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S.No
YEARS GROSS INCOME (RS. IN CRORES)
1. 2001 8827.11
2. 2002 9982.46
3. 2003 11194.47
4. 2004 12039.92
5. 2005 13585.39
6. 2006 16510.51
7. 2007 19636.53
8. 2008 21966.84
9. 2009 23678.46
10. 2010 26862.98
AWARDS
ITC`s Cigarettes business has won numerous awards for its quality, environmental management
systems and product excellence.
The Kolkata factory has won the prestigious Genentech Safety Gold Award for the year 2003-
2004 in the manufacturing sector.
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ITC`s cigarette factories in Kolkata, Bangalore and munger have been awarded the OHSAS
18001 Certificate by Det Norske VERITAS (DNV) for their Occupational Health and Safety
Management systems(OHSMS).
ITC has been awarded the Best Manufacturer of Cigarettes and 3 Best Exporter of Tobacco
Products for 2003, by the Tobacco Board of India.
The Saharanpur factory has won the GOLD Award, 2003 on Occupational Safety from The
Royal Society for the Prevention of Accidents (ROSPA).
The Kolkata factory was the first cigrate factory in the world to receive the ISO 14001
accreditation for their environmental management systems.
The Saharanpur and Bangalore factories have also received the ISO 14001 certification.
All cigarette factories have ISO 9002 Quality Certification.
The Kolkata factory has won the Rajiv Gandhi National Quality Award (Best in Eastern
Region) for 1998.
The ITC has also received the prestigious Sword of Honors Award from the British Safety
Council for highest standards of safety.
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Mission Sunehra Kal, ITC’s rural capacity building programme, now active in 11 States,
empowers rural people communities to sustainable changes that make them
economically competitive and socially secure.
In the rural communities where the mission has put down roots there is a new spirit of optimism
and confidence. People have augmented and diversified their livelihoods. Education for children,
employment for women, sanitation and family health have taken on a new urgency. Every family
and every farm has resources to build a better future. Stagnation and deterioration have given
way to change and improvement.
To accomplish this change, ITC targets four problems, which it believes are the fundamental
obstacles to productivity and growth in the farm sector :
1. Loss of productivity through soil erosion caused by intensification of land use and
decline of water tables and forest resources.
2. Dependence on out-moded farm practices and inferior inputs.
3. Loss and disruption of farm incomes and non-availability of alternative livelihoods.
Inadequate access to primary education and healthcare
4. Inadequate access to primary education and healthcare
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ITC enables farmers to implement solutions that are sustainable because they are
1. mutually reinforcing,
2. based on knowledge transfer and co-operative application of technology,
3. dependent on mobilisation and optimisation of local resources.
The delivery model mobilises a four-way partnership between village communities, specialist
NGOs, the Government and ITC, bringing to every initiative the best relevant management and
technical expertise.
ITC has also worked with State Governments in pioneering public-private partnerships. In
Andhra Pradesh, 3,596 hectares of wasteland have been developed so far through a collaboration
with the State Government’s rural poverty reduction project, Indira Kranthi Padham, and its
Comprehensive Land Development programme. ITC has also signed a landmark agreement with
the Government of Rajasthan to bring 5,000 hectares under soil and moisture conservation in the
drought-prone Bhilwara district.
By augmenting water resources and forest cover and fostering organic soil management, ITC
has enhanced farm productivity. It has simultaneously opened up new avenues of non-farm
income and employment to reduce pressure on land.
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RESEARCH PROBLEM
TO ANALYSIS THE SALES & DISTRIBUTION OF AASHIRWAD FLOUR IN
DIFFERENT- DIFFERENT PLACES OF SAHARANPUR CITY AND FIND OUT THE
REASON FOR DECREASE IN IT SALES.AND ALSO FINDS OUT THE DIFFERSENCES
BETWEEN ITS COMPETITORS PRODUCT.
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OBJECTIVE OF RESEARCH
TO ANALYSE THE SALES OF AASHIRVAAD IN THE CITY
OF SAHARANPUR.
TO ANALYSE THE DISTRIBUTION OF AASHIRVAAD IN
THE CITY OF SAHARANPUR.
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REVIEW OF LITERATURE
DEFINITION OF SALES :
It is a process by which
-one identifies the people, who have a need. [ PROSPECTING]
-one determines the needs of the people.[ NEEDS ]
-one determines a way of finding a solution to the prospect's problem.[ PROPOSE]
-one determines the way of communicating your product as a solution. [RECOMMENDING]
-one determines the value for the product for the prospect.[ ADVOCATING YOUR
PRODUCT].
-one determines / sells benefits of the product to the prospect. [ SELLING BENEFITS]
and then creating a transaction for exchanging the product for
a value. [ CLOSING THE SALE ]
and thus creating a satisfaction to the buyer's needs/wants.
[ CREATING CUSTOMER SATISFACTION]
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================================================
Frequently there may be a chain of intermediaries, each passing the product down the chain to
the next organization, before it finally reaches the consumer or end-user. This process is known
as the 'distribution chain' or, rather more exotically, as the 'channel'. Each of the elements in
these chains will have their own specific needs; which the producer must take into account, along
with those of the all-important end-user
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DEFINITION OF DISTRIBUTION
THE ACT OF DISTRIBUTION MEANS ; apportionment. Something distributed; over
-The geographic occurrence
-The customers occurrence
-The usage occurence
-Others
The process of distribution of goods/services could include
-logistics
-warehousing
-transportation
-order processing/ servicing
etc etc
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Traditionally, distribution has been seen as dealing with LOGISTICS: how to get the product or
service to the customer. It must answer questions such as:
The two-step channel of distribution is for the producers to give the retail small quantities.
Should the product be sold through a retailer?
Should the product be distributed through wholesale?
Should multi-level channels be used?
How long should the channel be (how many members)?
etc etc
The distribution channel
Channels
A number of alternative `channels' of distribution may be available:
Selling direct
Mail order (including Internet and telephone sales)
Retailer
Wholesaler
Agent (who acts on behalf of the producer)
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HYPOTHESIS
(a) NULL HYPOTHESIS -Sales &distribution is essential for any business. Retailers are
Satisfied regarding the sales & distribution of the company. They are satisfied with the
quality of company product & also satisfied with packaging of the company.
(b) ALTERNATIVE HYPOTHESIS: Some retailers are unsatisfied with the sale of
aashirvaad because they told us the rate of aashirvaad is more than other flour product.
So they are unsatisfied.
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RESERACH DESIGN
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SAMPLE SIZE:
A sample size of100 shopkeeper was taken.
SAMPLE PROCEDURE :
Simple random sampling was done.
DATA COLLECTION INSTRUMENT :
The study is based on analysis and interpretation of a questionnaire which was distributed to
100 shopkeepers. The survey included open and ended questions the information about the
new shopkeeper who are open the shop recently or in few days.
SAMPLE DESIGN
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Data collection (primary & secondnary).
Graphical representation.
Data representation.
Select different-2 market of Saharanpur
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SOURCES OF DATA
Both Primary data and secondary data were collected to meet the objective. Data is taken as
per the requirements of the study.
TO collect the primary data, we went to the different-2 market of Saharanpur city.
In this research we collect the data from 10 markets & about 100 shops for collect primary
data, for collect the secondary data we use ITC website ,news paper ITC report, market
trend,magzine article.
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COLLECTION OF DATA
For collection of primary data we went to the different-2 market of Saharanpur city. For
collection of primary data we prepared a questionnaire to know about the research. In this we
meet the 100 retailers & ask him different-2 question to complete the objective that we have to
done in the research objective.
In collection of primary data we use ITC website, news paper ITC report, market trend,
magazine article & other related information to complete the objective of research.
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ANALYSIS OF DATA
In Saharanpur City there are mainly three brands competing each others. These are Aashirvaad , Shaktibhog & Local mill flour
S.NO COMMODITY WEIGHT (KG.) PRICE (Rs)
1.
Aashirvaad
Flour
10 kg. 190-195 Rs.
2.
Shakti Bhog
Flour
10 kg. 170-175 Rs.
3.
Local Mill
Flour
10 kg. 140-145 Rs.
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SALES ( IN %)
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S.No Area Aashirvaad
Flour
Shakti Bhogh Local Mill Flour
1. Naveen Nagar 20% 30% 50%
2. Chander Nagar 20% 30% 50%
3. Khalashi Line 10% 10% 80%
4. Sugar Mill 15% 10% 75%
5. Court Road 25% 35% 40%
6. Hakikat Nagar 15% 20% 65%
7. Behat Road 5% 5% 90%
8. Sharda Nagar 10% 15% 75%
9. Railway colony 10% 10% 80%
10. Ravi Nagar 10% 15% 75%
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INTERPRETATION
BASED ON THE FINDINGS OF THE SURVEY WE GET THE FOLLOWING RESULTS:
NAVEEN NAGAR
In this area aashirvaad had got all generally all positive review from the shop.
Shakti bhog
Local mill
Aashirvaad
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CHANDER NAGAR
In this area aashirvaad had got also all generally all positive review from the shop.
Shakti bhog
Local mill
Aashirvaad
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KHALASHI LINE
In this area the sale of aashirvaad very lower than its competitor local mill flour.
Shaktibhog
Local mill
Aashirvaad
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SUGAR MILL
In this area position of Aashirvaad better than to Shakti bhog, but not better than local mill flour
Shaktibhog
Local mill
Aashirvaad
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COURT ROAD
In this area there are great competition amongst all three product but local mill flour sales more than others.
ShaktibhogLocal millAashirvaad
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HAKIKAT NAGAR
In this area there are great competition in Shakti bhog & aashirvaad flour.
Shaktibhog
Local mill
Aashirvaad
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BEHAT ROAD
Sales- It is the one of the areas where rural area is nearby due to which here Local mill flour is doing well.
Shaktibhog
Local mill
Aashirvaad
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SHARDA NAGAR
In this area there is great share of local mill flour in this area of Saharanpur.
Shaktibhog
Local mill
Aashirvaad
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RAILWAY COLONY
In this area there is also a great share of local mill flour in Saharanpur market.
Shaktibhog
Local mill
Aashirvaad
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RAVI NAGAR
In this area also a great share of local mill flour in this area of Saharanpur market.
Shaktibhog
Local mill
Aashirvaad
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DISTRIBUTION
S.No AREA Aashirvaad Shakti Bhogh Local Mill Flour
1 NAVEEN NAGAR R.S R.S R.S
2 CHANDER NAGAR R.S R.S R.S
3 KHALASHI LINE O.B O.B R.S
4 SUGAR MILL O.B O.B R.S
5 COURT ROAD R.S R.S R.S
6 HAKIKT NAGAR O.B O.B R.S
7 BEHAT ROAD O.B O.B R.S
8 SHARDA NAGAR O.B O.B R.S
9 RAILWAY COLONY O.B O.B R.S
10 RAVI NAGAR O.B O.B R.S
O.B=ORDER BOOK, R.S=READY STOCK
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FINDINGS
After Conducting the Survey on Sales and Distribution of Aashirvaad Flour in the city of
Saharanpur,
We find that the rate of Aashirvaad Flour is more than its Competitor ( Shakti Bhogh and
Local Mill Flour.
The Retailers said that product is strong, but due to high rate than others its sale is less
than its competitors.
We also find that the packaging of Aashirvaad is better than its competitors.
We also find that the Distribution of ITC Aashirvaad is much better than others.
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CONCLUSION
Conclusion is that, there are 50% people of Saharanpur belong to the middle class family and
also the 30% people of Saharanpur living below than poverty line, so it is impossible to them to
purchase costly product.
If we talk about the flour of the weight of 10 Kg. The rate of local mill flour is between 140 -
145 Rs. To compare with Aashirvaad it is less than about 50 Rs. (Aashirvaad rate is between
190-195 Rs.)
It means that they purchase more 3 Kg. flour in 50 Rs.
If we talk about Shakti Bhogh it is also less than 20 Rs, in comparison to Aashirvaad (Shakti
Bhogh rate is between 170-175 Rs.)
So ITC should work on it, to increase the sales of Aashirvaad in the market of Saharanpur.
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.
SUMMARY
After going thick on the things, now the time is to make a complete picture. While
making a product SKU (stock keeping unit) of the shop retailers think about the GMROI (Gross
margin return on investment) & they promote the brand which pays them highest. They expect
return in the form of profit margin, company schemes and window displays. Among these
company schemes makes the difference & are the highest sources of motivation after profit
margins. Retailing demands a constant push from the company.
Marketers need to use advertising and brand building strategy to address the discerning
buyers and retail push to in the different buyers. The manufacturer should understand the
consumer behavior. Because retailers can’t help quality and price. It is only up to the
manufacturer to provide the consumer what he wants. I need to stress on it because 77% retailers
said that it is the demand for what we sell.
At the time of research it is found that the profit margins available to the all distributors of
different brands and retailers are same. Retailers are mainly getting profit of 10-12 %. But what
vary are the schemes introduced by the companies for retailers and end consumers.
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SUGGESION
These are the following suggestion.
Company should decrease the rate of aashirvaad.
Company should more work on advertising of aashirvaad.
Company should also work for its distribution.
Company should reduce the awareness of people about itc.
Company should start many scheme & offer to increasing of aashirvaad.
Company should also analysis its competitor’s strategy.
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LIMITATION
Time is short for deep research.
The rate will change in time to time.
The study is limited.
The study is limited to some areas of Saharanpur city.
We have to consider only 10 Kg. weights
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ANNEXURES
(1) Which flour you selling in the present?
(a) Shakti bhog
(b) Aashirvaad
(c) Local mill
(2) Which brand is delivering you proper service?
(a) Shakti bhog
(b) Aashirvaad
(c) Local mill
(3) Which factorsdo you considers while purchasing flour?
(a) Quality
(b) Price
(c) Resource
(4) Which brand do you store most?
(a) Shakti bhog
(b) Aashirvaad
(c) Local mill
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(5) When a consumer comes to your shop which brand you gives to him?
(a) Shakti bhog
(b) Aaswhirvaad
(c) Local mill
(6) Which brand is offering you highest margins?
(a) Shakti bhog
(b) Aaswhirvaad
(c) Local mill
(7) Which brand distribution in the best?
(a) Shakti bhog
(b) Aaswhirvaad
(c) Local mill
(7) which brand packagaging in the best?
(a) Shakti bhog
(b) Aaswhirvaad
(c) Local mill
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(8) Which brand is giving you more instruction about the product?
(a) Aashirvaad
(b) Shakti bhog
(c) Local mill
(9) Have you use aashirvaad?
(a) Yes
(b) No
(10) What is your opinion about aashirvaad?
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BIBLIOGRAPHY
ITC ANNEXURESITC REPORTS MARKETTING MANAGEMENT- P. KOTLERMARKETING RESEARCH-G.C. BERIwww.itcportal.com RESEARCH METHODOLOGY-C.R.KOTHARI