RETAILER PREFERENCE TOWARDS SUNFEAST BISCUITS INTRODUCTION Indian marketing is largely described as sellers market. Demand is invariably greater than supply. Purchasing power of mass is limited. More than 30% of our population has income below the poverty line. Bulk of our population resides in villages and markets have got to capitalize rural marketing opportunity. The consumers are ignorant, illiterate, unorganized and hence they have weak bargaining power. Most of our business enterprises are still having selling concepts, which is product, oriented marketing approach. Bigger business houses having national market are adopting integrated corporate planning sound market planning as well as strategic marketing planning have very limited scope of present. A change is taking place is the marketing environment at a reasonable speed and money. Consumer oriented marketing company are beginning to realize the pressure of competition and buyer market. Marketing are called upon to anticipate changes in the marketing environment involving opportunities, risks and uncertainties. They are required to forecast the direction and intensity of these future changes in the environment and secure favorable relationship with the changing environment. To do this intelligent planning marketers need information. Accurate sales forecasting involves collection and reliable sales forecast, marketing plans and programmes through 1
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RETAILER PREFERENCE TOWARDS SUNFEAST BISCUITS
INTRODUCTION
Indian marketing is largely described as sellers market. Demand is invariably greater than supply.
Purchasing power of mass is limited. More than 30% of our population has income below the poverty
line. Bulk of our population resides in villages and markets have got to capitalize rural marketing
opportunity. The consumers are ignorant, illiterate, unorganized and hence they have weak bargaining
power. Most of our business enterprises are still having selling concepts, which is product, oriented
marketing approach. Bigger business houses having national market are adopting integrated corporate
planning sound market planning as well as strategic marketing planning have very limited scope of
present. A change is taking place is the marketing environment at a reasonable speed and money.
Consumer oriented marketing company are beginning to realize the pressure of competition and buyer
market.
Marketing are called upon to anticipate changes in the marketing environment involving
opportunities, risks and uncertainties. They are required to forecast the direction and intensity of these
future changes in the environment and secure favorable relationship with the changing environment. To
do this intelligent planning marketers need information. Accurate sales forecasting involves collection
and reliable sales forecast, marketing plans and programmes through organised information system, we
would have profitable marketing activities minimum risks and uncertainties.
The essence of modern marketing concepts is that all elements of business should be geared
towards the satisfaction of consumers. This requires a through understanding of consumer behaviours
and buying motives without such insights marketers will fail to segment market effectively and design
strategy for an effective penetration into the defined market segments.
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The adoption of the consumer forecasts in fact the real difference between the traditional
concept of selling and the modern concept of marketing. It is the enough for the marketing manager to
get suitable relations to the given wants of consumer in a of Business management study programme
preparation of the project report on a chosen topic is compulsory. To carry out this task I have
undertakes a detail survey of Retailer behaviour on Sunfeast Biscuits and Marketing performance an
market share of ITC Limited. A case has study has also be undertaken on Sunfeast Biscuits. Reference is
also been made to marketing of other Biscuits passive way. As a part with other competitive brands.
In the modern world the Biscuits have become so popular that it is deemed to be best and
appealing media of mass entertainment and even for education.
An attempt has been made in this project report to know the details regarding history,
fundamental concepts, marketing to biscuits and other details of biscuits. Attempt has also been present
marketing performance of Sunfeast biscuits and certain suggestions have also been given for promotion
of marketing activities by adopting suitable marketing strategy.
STATEMENT OF THE PROBLEM:
“A RETAILER PREFERENCE TOWARDS BISCUITS IN SHIMOGA CITY WITH SPECIAL REFERENCE TO
SUNFEAST” The motto behind the project work was to understand the retailers perception and
satisfaction level regarding the sunfeast biscuits and Britannia biscuits with special reference to the
retailers of Shimoga City and to review and re-investigates its activities in the market.
The opinion of the retailer with respect to any product and the services from the providers
varies based on their unique perceptions. For each individual, reality is totally personal phenomenon,
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based on that person’s needs, wants, values and personal experiences. Thus, to the marketer, retailer’s
perception and opinions are much more important than the knowledge of objective reality.
NEED OF THE STUDY:
The need of the retailers’ perception and satisfaction measurement arises along with the need
to satisfy the ITC product retailers and customers so that to keep them with the company. Ensuring
their satisfaction is vital to the ITC product distributors for long term business survival and profitability.
We need to understand and evaluate satisfaction levels of the sunfeast biscuits customers in
comparison with the Britannia biscuits. Perception surveys answer many tough questions, which help in
the growth of the confectionary sector. A well-designed satisfaction survey can give answer to the most
critical questions which are otherwise impossible to get solved and may get complicated upon course of
time and may increase the levels of the risks attached with the functioning of the enterprise in its
regular course of business.
The need for conducting this study was to measure retailers’ preferences, perceptions and
choices towards the biscuits of Sunfeast and Britannia and to know the factors affecting them.
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OBJECTIVES OF THE STUDY:
To study growth and performances of the confectionary industry.
To study retailer choices regarding biscuits of Sunfeast and Britannia.
To study preference regarding the Sunfeast biscuits.
To find out influencing factor for retailers preference to particular brand.
To find out what is the position of Sunfeast biscuits in comparison with Britannia biscuits.
SCOPE OF THE STUDY:
The scope of the study is broader than mere gauging retailers’ perception regarding Sunfeast
biscuits in comparison with the Britannia biscuits. It makes an effort to build and strengthen
relationships with the customers. It makes competition analysis as well as helps to knowing the
expectation of the retailers.
The study will help the wholesale distributors of Sunfeast biscuits to identify, which section need
to improve so that it can provide retailers and customers, the enhanced satisfaction. The study will also
help the management to decide which strategies are to be used to improve the satisfaction level among
the customers. The study was limited to Shimoga city within the constraints, time and sample size.
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LIMITATIONS OF THE STUDY:
All the possible key is the taken from the original source and makes the project has authentic as
possible. However, it is subject to the certain limitations. They are as under,
1. The information given by the respondents may or may not be true. Because in some cases
respondents may be casual they don’t give correct opinion while answering the questionnaire.
2. The views of the respondents cannot be taken as general view of general public to conclude and
prepare the project.
3. Due to limitations of the time, sample size is restricted to 100 respondents.
4. Retailers preferences change as per circumstances, where the information used in the project will
become invalid.
5. Market can bring about abrupt changes, which may lead to deterioration in the authenticity of the
surveyed project.
6. The qualitative research may have its own basis which again limits for broader undertakings.
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RESEARCH DESIGN:
To analyze the retailers perception for Sunfeast biscuits in comparison with the Britannia
biscuits. By simple random sampling method, 100 retailers are selected from different places of Shimoga
city to put forth their views and to fill the questionnaires.
The questionnaire is drafted to find out various motives, preferences and choices of retailers on
their Sunfeast and Britannia biscuits providers. The questionnaire covers demographic profiles of the
consumers and various attributes.
The questionnaire is collected after respondents fill them and simple percentage calculation is
drawn to findings and results.
SAMPLING METHOD:
1. Sampling design:
Research is designed for two sampling plans. It consists of three divisions.
i.e., sampling unit, sampling size and sampling procedure.
2 Sampling procedure:
Empirical field studies required collection of first hand information of data pertaining to the
study from the field. These units of study include geographic area of Shimoga city. The aggregate of the
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all the units pertaining the study is called the population or the universe. Population is the largest group
to be studied. It is the total collection of elements about which we wish to make inferences. A member
of population is an element. It is Subject on which measurement is taken. It is the unit of study, a part of
population is known as a sample. The process of drawing a sample from a larger population is called
sampling.
The list of sampling units from which a sample is taken is called the sampling frame. For the
present study purpose, simple random sampling has been selected. Simple random sample is used
because every elementary unit has got equal chance to be included in the sample.
3 Sample units:
This particular survey was directed at only those who are selling biscuits in Shimoga city.
4 Sampling plan:
Sampling techniques may be classified as non-probability and probability techniques. Non-
probability sampling techniques relay on the research judgments. Consequently, they do not permit an
objective evaluation of the precision of the sample results and estimates obtain are not statistically
project able to the population. The Commonly used non-probability sampling techniques include
convenience sampling, judgment of sampling quota sampling and snowball sampling.
In probability sampling techniques, sampling units are selected by chance. Each sampling unit
has a non-zero chance of being selected and the researcher can specify every potential sample of the
given size that could be drawn from the population, as well as the probability of selection each sample.
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It is also possible to determine the precession of sample estimates inferences make projections to the
target population.
Probability sampling techniques include simple random sampling, systematic sampling, stratified
sampling, cluster sampling, sequential sampling and double sampling.
The choice between probability and non-probability sampling should be based on the nature of
the research, degree of error tolerance, relative magnitude of sampling non-sampling errors, variability
in the population and statistical, operational considerations.
5 Sample size:
The sample size is of 100 respondents consisting of retailers selling biscuits in Shimoga city.
SOURCES OF DATA:
Data are facts, figures and other relevant materials, past and present, serving as basic study and
analysis.
The data serves as the bases for analysis. Without an analysis of actual data on specific
inferences can be drawn on the question under study. Inferences based on imagination or guess work
cannot provide correct answers to research questions. The relevance, adequacy and reliability of data
determine of quality of findings of a study.
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For the purpose of present study data from two sources have been gathered namely primary
and secondary data.
1 Primary data:
Primary data are original data collected for the purpose of a particular study. In the present
study primary data have been collected by personal interview method with the help of questionnaire.
2 Secondary data:
These are the sources containing data, which have already been collected and compiled for
other purpose by other researchers. The secondary sources consist of readily available materials and
already compiled statistical statements and reports whose data may be used by researcher for his / her
studies.
Secondary data for the present research collected the major sources of secondary data are given
below.
Cygnus reports
Business line
Various websites
Different marketing journals
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The primary data are those data collected a fresh and for the first time and thus happen to be
original in character.
The secondary data on the other hand, are those, which have already being collected by
someone else and which have already been passed through the statistical process. The methods of
collecting primary and secondary data differ. Since primary data are to be originally collected, while in
case of secondary data in the nature of data collection work is merely that of compilation. So, primary
data has been gathered for the purpose of the study employing all the above methods. Secondary data
has been gathered from various published sources, the same has been given in detail in Bibliography.
TOOLS AND TECHNIQUES OF DATA COLLECTION:
The researcher has adopted the questionnaire as the data collection tool by means of extensive
survey on selected respondents of adequate sample size. The researcher has taken utmost care to see
that the degree of bias is kept to the minimum by avoiding the ambiguity in the questions and while
recording the responses from the interviewed respondents to come out with a meaningful data
collection pattern, which facilitates the effective analysis and interpretation of the collected data to
come out with fruitful and worthwhile conclusions and to put forward significant conclusion for the
company to implement the same in order to have a competitive edge over the rest of the competitors in
the market place.
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COMPANY PROFILE
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ITC PROFILE:
ITC is one of India's foremost private sector companies with a market capitalization of
nearly US $ 18 billion and a turnover of over US $ 5.1 Billion. ITC is rated among the World's
Best Big Companies, Asia's 'Feb. 50' and the World's Most Reputable Companies by Forbes
magazine, among India's Most Respected Companies by Business World and among India's
Most Valuable Companies by Business Today. ITC also ranks among India's top 10 `Most
Valuable (Company) Brands', in a study conducted by Brand Finance and published by the
Economic Times.
Take an abiding commitment to world-class quality. Add deep market insight; cutting-edge
technology; a pervasive culture of innovation. And you have ITC brands that do India proud across a
range of products and services: Aashirvaad, Sunfeast, Kitchens of India, mint-o, Candyman, Wills
Lifestyle, John Players, ITC-Welcome group, Expressions, Classmate, Paperkraft, Elemental Chlorine-Free
Cyber XLPac, Aim, iKno, Mangaldeep. The list goes on.
Even as its brands delight consumers and enrich their quality of life, ITC continues to be
powered by its aspiration to make a larger contribution to national imperatives like empowering
farmers, greening wastelands, irrigating dry lands, nurturing small scale enterprises, empowering village
women and supporting rural education. Because our people and our country deserve the best.
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Business of ITC
During the June, 07 quarter, a 12.5% value added tax was levied on cigarettes, which is expected
to depress the volume. Since ITC is a dominant player, it has the pricing power to compensate for any
fall in volumes. To maintain its dominant position in the tobacco business in the face of the rising
competition, ITC has announced plans to invest around Rs.1000 million in the cigarette business.
However, its non tobacco business is increasing and acquiring greater significance as the
company is betting huge sums on new business. In FY07, the cigarette business accounted for around
half of the ITC consolidated revenues but only 37% of its capital expenditure. Not surprisingly, its non-
tobacco business is growing faster. In FY07, its non cigarette business grew 32% against 14% growth in
the tobacco business. Most importantly, profit before tax from non tobacco business was up 34%
against 17% growth of its tobacco business. This was achieved despite continued losses reported by non
tobacco FMCG business. In the June quarter, revenues from non tobacco business grew 7% mainly, on
account of a decline in the profitability of paper and paper board business.
ITC is using its strength in rural sourcing network and brand building to acquire industry
leadership in branded staples, ready to eat, hospitality and life style apparel segments. In the short run,
it has depressed it consolidated margins and returns on capital, but many of these businesses may now
start yielding results. It now plans to expand its branded packaged food portfolio by launching more
products for which it has stepped up research and development spend.
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ITC is also expanding its hotel business and started rebranding exercise to maintain its premium
status as many international chains are planning to foray into India. It is adding around 770 rooms and
100 service apartments in Bangalore and Chennai. Its paper business provides packaging solutions to its
other businesses. It is also expanding in the paper business to tap Indian paper growing market. It is
doubling its pulp capacity and adding new paperboard machines. This will raise its paper and paper
board capacity by around 37% to 4.5 lakh tones.
NATURE OF BUSINESS CARRIED:
FMCG
HOTELS
PAPERBOARDS & PACKGING
AGRI - BUSINESS
GROUP COMPANIES
FMCG:
CIGARETTES:
ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a
leadership position in every segment of the market. It’s highly popular portfolio of brands includes India
Kings, Gold Flake, Navy Cut, Scissors, Capstan, Berkeley and Bristol.
ITC's leadership is founded on its core strategy of continuously enhancing product
values through significant investments in product design, manufacturing technology, quality,
marketing and distribution. In just the last 5 years, ITC has made capital investments of over Rs.
7 billion in its cigarettes business. In ITC, one of the pioneers of market research in India, the
consumer is still the King. The Company continuously endeavors to provide its consumers
products that are benchmarked to international quality. This strategic focus on the consumer
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has paid ITC handsome dividends. The most important of these is its enriched product mix,
unmatched by competition. ITC's share of filter cigarettes in the country is more than 70%.
In pursuit of international competitiveness, ITC has launched four brands - Checkers, Hi-
Val, Royale Classic and Gold Crest - in the extremely competitive US market. Recently ITC has
launched Royale Classic, Gold Cut and Scissors Filter Kings cigarettes in the Middle East. The
response to these brands has been encouraging. ITC's cigarettes are produced in its state-of-
the-art factories at Bangalore, Munger, Saharanpur and Kolkata. These factories are known for
their high levels of productivity and very contemporary work environment.
ITC's FMCG businesses have one of the largest retail networks in the country, consisting
of over 2 million retailers. Its reach covers a wide range of the retail spectrum, from premium
outlets in the metros to small shops in the interiors of rural India.
FOODS:
ITC made its entry into the branded & packaged Foods business in August 2001 with the launch
of the “Kitchens of India” brand. A more broad-based entry has been made since June 2002 with brand
launches in the Confectionery, Staples and Snack Foods segments. The packaged foods business is an
ideal avenue to leverage ITC's proven strengths in the areas of hospitality and branded cuisine,
contemporary packaging and sourcing of agricultural commodities. ITC's world famous restaurants like
the ‘Bukhara’ and the ‘Dum Pukht’, nurtured by the Company's Hotels business, demonstrate that ITC
has a deep understanding of the Indian palate and the expertise required to translate this knowledge
into delightful dining experiences for the consumer.
ITC has stood for quality products for over 90 years to the Indian consumer and several of its
brands are today internationally benchmarked for quality.