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					   CHAPTER 1


INTRODUCTION




       1
                            INTRODUCTION TO THE TOPIC

        My summer project title “Relative comparison on Sunfeast with Britannia & Parle” is a
descriptive research design. In this report, I have tried to collect data through questionnaire &
survey filled by retailers belonging to different localities in the city of Patna.
        The project deals with detailed study of ITC Limited & its products, but the main
emphasis of the project on ITC Sunfeast. As per the project, the main objective is
identification and forecasting market for ITC Sunfeast. The scope of the project extends to
Brand building/positioning, strategy to enter into untouched market, customer satisfaction and
SWOT analysis of the company as these are inseparable part of marketing.
        I have done a detailed survey in the market of Patna to find out perception about
Sunfeast in comparison with Britannia & Parle. At the end of my research, it was concluded
that Sunfeast rapidly capture the market at Patna due to flavor variant and reasonable pricing
policy but Britannia & Parle equally treats as market leaders in biscuits industry.


Reason for selecting the topic:
        My project topic is “Relative comparison on Sunfeast with Britannia & Parle”. The
reason behind selecting this topic is that ITC Sunfeast is facing close competition with
Britannia & Parle. The most of retailers demand Britannia & Parle in comparison with
Sunfeast. That‟s why I have chosen this topic to find out all the facts/reasons behind the
popularity of Britannia & Parle.




                                                  2
     CHAPTER 2


INDUSTRY PROFILE




         3
                                 INDUSTRY PROFILE

Fast Moving Consumer Goods (FMCG):

       Products which have a quick turnover, and relatively low cost are known as Fast
Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year.
Examples of FMCG generally include a wide range of frequently purchased consumer
products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and
detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products,
and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged
food products, soft drinks, tissue paper, and chocolate bars.

        A subset of FMCGs is Fast Moving Consumer Electronics which include innovative
electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and
Laptops. These are replaced more frequently than other electronic products. White goods in
FMCG refer to household electronic items such as Refrigerators, T.Vs, Music Systems, etc. In
2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in India.
According to the AC Nielsen India study, the industry grew 5.3% in value between 2004 and
2005.

FMCG industry economy
        FMCG industry provides a wide range of consumables and accordingly the amount of
money circulated against FMCG products is also very high. The competition among FMCG
manufacturers is also growing and as a result of this, investment in FMCG industry is also
increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector
with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by
2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5%
of Gross Domestic Product (GDP).

Common FMCG products
        Some common FMCG product categories include food and dairy products, glassware,
paper products, pharmaceuticals, consumer electronics, packaged food products, plastic goods,
printing and stationery, household products, photography, drinks etc. and some of the
examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts, detergents,
tobacco and cigarettes, watches, soaps etc.

Market potentiality of FMCG industry
       Some of the merits of FMCG industry, which made this industry as a potential one, are
low operational cost, strong distribution networks, presence of renowned FMCG companies.
Population growth is another factor which is responsible behind the success of this industry.
                                               4
Leading FMCG companies
       Some of the well known FMCG companies are Sara Lee, Nestlé, Reckitt Benckiser,
Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars
etc.

Job opportunities in FMCG industry
        FMCG industry creates a wide range of job opportunities. This industry is a stable,
diverse, challenging and high profile industry providing a wide range of job categories like
sales, supply chain, finance, marketing, operations, purchasing, human resources, product
development, and general management.

Indian FMCG Sector

        The Indian FMCG sector is the fourth largest in the economy and has a market size of
US$13.1 billion. Well-established distribution networks, as well as intense competition
between the organized and unorganized segments are the characteristics of this sector. FMCG
in India has a strong and competitive MNC presence across the entire value chain. It has been
predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6
in 2003. The middle class and the rural segments of the Indian population are the most
promising market for FMCG, and give brand makers the opportunity to convert them to
branded products. Most of the product categories like jams, toothpaste, skin care, shampoos,
etc, in India, have low per capita consumption as well as low penetration level, but the
potential for growth is huge. The Indian Economy is surging ahead by leaps and bounds,
keeping pace with rapid urbanization, increased literacy levels, and rising per capita income.

        The big firms are growing bigger and small-time companies are catching up as well.
According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by
MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27
of these are owned by Hindustan Lever. Pepsi is at number three followed by Thumps Up.
Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle
(9). These are figures the soft drink and cigarette companies have always shied away from
revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG.
Between them, they account for 35 of the top 100 brands.




                                              5
THE TOP 10 COMPANIES IN FMCG SECTOR:

Sr. NO.      Companies
1.           Hindustan Unilever Ltd.
2.           ITC (Indian Tobacco Company)
3.           Nestlé India
4.           GCMMF (AMUL)
5.           Dabur India
6.           Asian Paints (India)
7.           Cadbury India
8.           Britannia Industries
9.           Procter & Gamble Hygiene and Health Care
10.          Marico Industries

        The companies mentioned in the table, are the leaders in their respective sectors. The
personal care category has the largest number of brands, i.e., 21, inclusive of Lux, Lifebuoy,
Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in the 21, aggregating Rs. 3,799
crore or 54% of the personal care category. Cigarettes account for 17% of the top 100 FMCG
sales, and just below the personal care category. ITC alone accounts for 60% volume market
share and 70% by value of all filter cigarettes in India.

       The foods category in FMCG is gaining popularity with a swing of launches by HLL,
ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637 crore.
Nestle and Amul slug it out in the powders segment. The food category has also seen
innovations like softies in ice creams, chapattis by HLL, ready to eat rice by HLL and pizzas
by both GCMMF and Godrej Pillsbury. This category seems to have faster development than
the stagnating personal care category. Amul, India's largest foods company, has a good
presence in the food category with its ice-creams, curd, milk, butter, cheese, and so on.
Britannia also ranks in the top 100 FMCG brands, dominates the biscuits category and has
launched a series of products at various prices.

        In the household care category (like mosquito repellents), Godrej and Reckitt are two
players. Goodknight from Godrej, is worth above Rs 217 crore, followed by Reckitt's Mortein
at Rs 149 crore. In the shampoo category, HLL's Clinic and Sunsilk make it to the top 100,
although P&G's Head and Shoulders and Pantene are also trying hard to be positioned on top.
Clinic is nearly double the size of Sunsilk.



                                              6
        Dabur is among the top five FMCG companies in India and is a herbal specialist. With
a turnover of Rs. 19 billion (approx. US$ 420 million) in 2005-2006, Dabur has brands like
Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. Asian Paints is enjoying a
formidable presence in the Indian sub-continent, Southeast Asia, Far East, Middle East, South
Pacific, Caribbean, Africa and Europe. Asian Paints is India's largest paint company, with a
turnover of Rs.22.6 billion (around USD 513 million). Forbes Global magazine, USA, ranked
Asian Paints among the 200 Best Small Companies in the World

       Cadbury India is the market leader in the chocolate confectionery market with a 70%
market share and is ranked number two in the total food drinks market. Its popular brands
include Cadbury's Dairy Milk, 5 Star, Eclairs, and Gems. The Rs.15.6 billion (USD 380
Million) Marico is a leading Indian group in consumer products and services in the Global
Beauty and Wellness space.

        India Biscuits Industry is the largest among all the food industries and has a turnover
of around Rs.3000 crores. India is known to be the second largest manufacturer of biscuits, the
first being USA. It is classified under two sectors: organized and unorganized. Bread and
biscuits are the major part of the bakery industry and covers around 80 percent of the total
bakery products in India. A biscuit stands at a higher value and production level than bread.
This belongs to the unorganized sector of the bakery Industry and covers over 70% of the total
production. India Biscuits Industry came into limelight and started gaining a sound status in
the bakery industry in the later part of 20th century when the urbanized society called for
readymade food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier
days. Now, it has become one of the most loved fast food products for every age group.
Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have
the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and
Uttar Pradesh. Maharashtra and West Bengal, the most industrially developed states, hold the
maximum amount of consumption of biscuits. Even, the rural sector consumes around 55
percent of the biscuits in the bakery products. The total production of bakery products have
risen from 5.19 lakh tonnes in 1975 to 18.95 lakh tonnes in 1990. Biscuits contributes to over
33 percent of the total production of bakery and above 79 percent of the biscuits are
manufactured by the small scale sector of bakery industry comprising both factory and non-
factory units. The production capacity of wafer biscuits is 60 MT and the cost is Rs.56, 78,400
with a motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of
the entire bakery production. Few years back, large scale bakery manufacturers like Cadbury
nestle, and brooke bond tried to trade in the biscuit industry but couldn't hit the market
because of the local companies that produced only biscuits. The Federation of Biscuit
Manufacturers of India (FBMI) has confirmed a bright future of India Biscuits Industry.
According to FBMI, a steady growth of 15 percent per annum in the next 10 years will be

                                                7
achieved by the biscuit industry of India. Besides, the export of biscuits will also surpass the
target and hit the global market successfully.
        India is the third largest biscuit manufacturing country after USA and CHINA
.Estimated annual turnover of Indian biscuit industry is around INR 65.0 billion .Biscuit
Industry in India is entering into competitive phase from period of two major players
dominating the industry to number of player making mark on national scene and getting share
of the market which is good for the industry.

Apart from Big 3(Britannia, Parle, ITC ) there are around 150 medium to small biscuit factory
in India . These Industries are now facing problem from increase of raw material price. With
Govt VAT upto 12.5% has added to their woes. Biscuit consumption per capita in India has
grown to 2.1kg per capita in comparison to 10kg per capita consumption in USA, UK and
Europe. GCC has consumption up to 6 kg per capita. According to IBMA, the biscuit industry
in India witnessed annual growth as 15% in 2003-04, 14% in 2004-05 and 2005-06, 13% in
2006-07, 15% in 2007-08 and 17% in 2008-09. While the growth rate has been stagnating
during last 4 years, it has picked up momentum during the 2007-08 and the first quarter of
2008-09 mainly on account of exemption from Central Excise Duty on biscuits with MRP up
to INR 100 per kg, as per Union Budget for 2007-08. The organized biscuit manufacturing
industry„s annual production were around 1.1 million tons in 2003-04, 1.25 million tons in
2004-05, 1.4 million tons in 2005-06, 1.6 million tons in 2006-07 and 1.7 tons in 2007-
08.Rural -Urban market penetration for biscuits has been 75%/85% for urban market and 55%
/65% for rural market .Branded /Organized to Unbranded/Un organized market share of
biscuit has been 60% for Organized sector and 40% for Unorganized sector. Biscuit
consumption pattern in the country are Northern India 25%, Western India 23%, Southern
India 24% and Eastern India 28%.Export share is around 15% of total production.
        Major types of biscuit popular in Indian market are Glucose, Marie, Cream, Crackers,
Digestive, Cookies and Milk. Major manufacturers are Britannia, Parle, ITC Sunfeast,
Priyagold, Anmol, Bisk farm, Dukes, Cremica, Priya, Veeramani, Bonn, Bhagwati, Raja,
Champion, Sobisco, Madhabi, Nezone, Windsor, Cookieman, Ankit, Shangrila, Nalanda,
Unibic , Cookie Man ,Raja Biscuit etc.




                                               8
     CHAPTER 3


COMPANY PROFILE




         9
                                COMPANY PROFILE

HISTORY OF THE ORGANIZATION:

       ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco
Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazaar
Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th
birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now
renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company
was historic in more ways than one. It was to mark the beginning of a long and eventful
journey into India's future. The Company's headquarter building, 'Virginia House', which
came up on that plot of land two years later, would go on to become one of Kolkata's most
venerated landmarks. The Company's ownership progressively indianised, and the name of the
Company was changed to I.T.C. Limited in 1974.

        In recognition of the Company's multi-business portfolio encompassing a wide range
of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging,
Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting
Gifting & Stationery - the full stops in the Company's name were removed effective
September 18, 2001. The Company now stands rechristened „ITC Limited‟. ITC is one of
India's foremost private sector companies with a market capitalization of nearly 19505 cr. and
a turnover of over is 12369 cr. 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. ITC was the first company in India to voluntarily seek a corporate governance rating.
ITC is rated among the World's Best Big Companies, Asia's 'Fab 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 has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Personal Care, Greeting Cards, Safety Matches and other FMCG products.
While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels,
Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its
nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.

       ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited,
is aggressively pursuing emerging opportunities in providing end-to-end IT solutions,
including e-enabled services and business process outsourcing.


                                             10
        ITC's production facilities and hotels have won numerous national and international
awards for quality, productivity, safety and environment management systems. ITC was the
first company in India to voluntarily seek a corporate governance rating.

        ITC employs over 21,000 people at more than 60 locations across India. The Company
continuously endeavors to enhance its wealth generating capabilities in a globalizing
environment to consistently reward more than 3,97,000 shareholders, fulfill the aspirations of
its stakeholders and meet societal expectations. This over-arching vision of the company is
expressively captured in its corporate positioning statements.

THE ITC VISION:
       Sustain ITC‟s position as one of India‟s most valuable corporations through world
class performance, creating, growing value for the India economy & the company
stakeholders.


THE ITC MISSION:
       To enhance the wealth generating capability of the enterprise in a globalizing
environment delivering superior & sustainable stakeholder value.

THE ITC POLICY:

        As a large Indian enterprise, ITC is uniquely positioned to contribute to public policy,
which it does through active participation in a number of fora. Its size also enables it to
influence the process of development and contribute to sustainable growth in the areas in
which it operates, thereby helping to transform the lives of a large number of people and
communities. ITC's objective of making a positive contribution to the society where it
operates is served by aligning its own operations with interventions and initiatives aimed at
creating sustainable livelihoods through farm and non-farm based activity. Striding a wider
canvas in the interest of the nation, ITC is committed to ensuring the preservation of India's
unique cultural heritage through various initiatives to promote, encourage and keep cultural
traditions alive. With such a diverse and critical social agenda, all ITC employees have the
obligation to display high levels of integrity and ethical behavior.




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                                 COMPETITORS

MAIN COMPETITORS OF ITC’S BISCUITS ARE BRITANNIA & PARLE:



                  ITC                          Bench mark Product


           Product Name             Company               Product Name


                                  Britannia       Tiger

Sunfeast Glucose
                                  Parle           Parle-G


                                  Britannia       Cream treat
Sunfeast Special –Cream
                                  Parle           Creams


Sunfeast Special Butter/Cashew    Britannia       Goodday


                                  Britannia       Marie Gold

Sunfeast Marie Lite
                                  Parle           Parle Marie



Sunfeast Snacky                   Parle           Monaco/ Nimkin




                                          12
                    ORGANIZATION CHART OF ITC




                             BRANCH MANAGER




 ASSISTANT MANAGER                                       ASSISTANT MANAGER
                              ASSISTANT MANAGER
          (FOOD)                     (PCP)                    (TOBACCO)




AREA         AREA     AREA                             AREA     AREA      AREA
                                                       MGR      MGR       MGR
MGR          MGR      MGR

                             AREA        AREA   AREA
                             MGR         MGR    MGR



   AREA
 EXECUTIVE




   AREA
 EXECUTIVE




   AREA
 EXECUTIVE




                                    13
                                GLOBAL HONOURS

ITC Chairman Y.C.Deveshwar has received several honors over the years. Notable
among them are:

 Year Award


 2007 SAM/SPG Sustainability Leadership Award conferred at the International
      Sustainability Leadership Symposium, Zurich.

 2006 Business Person of the Year from UK Trade & Investment, the UK Government
      organization that supports overseas businesses in that country.

 2006 Inducted into the `Hall of Pride' by the 93rd Indian Science Congress


 2005 Honored with the Teacher's Lifetime Achievement Award

 2001 Manager Entrepreneur of the Year from Ernst & Young Retail Visionary of the Year
      from Images, India's only fashion and retail trade magazine

 1998 Honorary Fellowship from the All India Management Association

 1996 Distinguished Alumni Award from IIT, Delhi

 1994 Marketing Man of the Year from A&M, the leading marketing magazine

 1986 Meridian Hotelier of the Year.




                                             14
                              SWOT ANALYSIS


STRENGTHS:                                  WEAKNESS:
1. Sunfeast Brand                           1. Dependence on retailers & grocery
2. Diversified Product Range                   stores for displaying diversified
3. Extensive Distribution Network              Sunfeast products on shelf to
   (Availability in most remote villages)   induce
4. Low & mid range price segment                impulsive buying
5. Better understanding of consumer         2. Dependence on other
psychology.                                 manufacturing units
6. Well known company ITC.                  3. Dependence on other transportation
                                            facility.




OPPORTUNITY:                                THREATS:
1. Estimated annual growth of 18%           1. Hike in cost of production due to
2. The 8000 crore food industry is          hike
   expected to grow to 1400 crore by           in prices of raw materials and
2015.                                          increase in transportation plus
3. Low Per capital consumption of              distribution cost due to high wedges
   Biscuits (1.9 KG) as against 5.5 KG in      and oil prices
   South East Asian countries.              2. Existing of popular biscuit brands
4. Increasing demand for Sugar free         like Britannia & Parle (having very
   cream crackers & diet biscuits           good distribution channels) into
5. Current penetration levels               biscuit industry.
   Urban Market : 75% to 85%                3. Aliva‟s (PepsiCo) biscuits may
   Rural Market : 50% to 65%                enter as a new competitor brand.
6. Growth in southern and east India




                                      15
     CHAPTER 4

PRODUCT PROFILE




         16
                                   PRODUCT PROFILE

VARIETIES OF SUNFEAST BISCUIT:

       In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose,
Marie and Cream Biscuits. Sunfeast‟s brand essence, "Spread the Smile" connotes happiness,
contentment, satisfaction and pleasure. The mascot Sunny reinforces the emotional aspects of
the brand. In a span of 6 years Sunfeast has launched many new varieties and has its presence
in almost all types of biscuit categories.

       ITC have a number of varieties in biscuits. All biscuits come under Sunfeast brand.
There are different types of biscuit product:- Glucose, Cream (Orange, Choco, coconut),
Special Butter, Special Cashew, Snacky (Salted & Chilly), Golden Bakery, Dream Cream,
Milky Magic, Nice, Dark Fantasy etc.


Sunfeast Milky Magic:


       Packed with goodness of milk these deliciously nutritious crisp and crunchy biscuits
are a favorite among mothers and kids. Milky Magic has the „power of 2‟ - A perfect balance
of energy that aids physical strength and mental ability. These biscuits strike the right balance
of milk and wheat which helps in an all round development and nurturing of the child.


Sunfeast Marie:
Sunfeast Marie Light: This ideal teatime biscuit is made from the finest quality wheat high in
fiber and keeps one light healthy and through the day.

Orange Marie: It has the distinction of being one of the most successful innovative Marie
biscuits and is liked by one and all.




                                               17
Sunfeast Golden Bakery:
          Sunfeast Golden Bakery is a premium cookie on an innovative and differentiated
platform. Launched nationally in March 2008, these cookies are made from the recipes crafted
by the master bakers of ITC Hotels and are slowly baked in the traditional way till they are
golden brown and develop the crispy broken crust texture. The Sunfeast Golden Bakery
cookies are available in three distinct flavours - Butter-Nut, Butterscotch and Choco-Nut
cookies. These products are designed to give consumers a rich & truly indulgent experience.
Sunfeast Dark Fantasy:
          Inspired by the Master Chefs of ITC hotels, it is the richest of chocolate vanilla
biscuits. These biscuits are created using carefully chosen premium ingredients for a sensory
experience unlike any other. Dark Fantasy is more than a biscuit; it‟s a luxurious mix of
aromatic cocoa and vanilla.


Sunfeast Glucose:
          For those light hunger pangs, a wholesome & nutritious choice as these golden brown
biscuits is made from the best quality wheat. Sunfeast Glucose biscuits are ideal not just for
kids but adults too.


Sunfeast Dream Cream:
          A truly scrumptious range of cream biscuits that have become an instant hit with
children. ITC‟s chefs have put their legendary skills into these biscuits to deliver truly tasty
cream biscuits. Special Flavor Crystals in Strawberry and Pineapple cream biscuits keep the
creamy flavor linger on.
Straw Berry Cream: The first of its kind cream biscuit with special strawberry flavor crystals
that will keep the creamy flavor linger on.
Bourbon: A special delight for all those chocolate lovers.
Orange Cream: Experience a tangy twist in biscuits with every Orange cream.
Butter Scotch Cream: Another first, the taste of ice-cream in cream biscuits.
Mango Cream: A special summer flavor cream biscuits for all those who love the king of
fruits.

                                              18
Elaichi Cream: Taste the queen of spices in cream biscuits.


Sunfeast Snaky:
                   Bigger than most others in the salted biscuit category, Snacky is light and
crispy like no other. From kids to adults, it‟s the quintessential „Family Biscuit‟. Available in
two variants, Classic salted and Chilli flakes - the very first of its kind in India.


Sunfeast sweet’n salt:
                   These thin and crisp biscuits come with a distinctive sundry taste, that of salt
and sweetness. A bite into one of these one keeps wondering about its taste.
Sunfeast Nice:

These are crisp coconut biscuits showered with sugar crystals. The crisp sugary sweetness will
just go on to make all those nice moments nicer.

Sunfeast Benne Vita Flaxseed Biscuits: If Benne Vita in Italian stands for „Good Life‟, then
Benne Vita Flaxseed biscuits just make the good life better. The Flaxseed content in these
protein and mineral enriched biscuits are rich source of Omega III acids that helps control
cholesterol. Flaxseed is the richest plant source of these essential Omega-3 Fatty Acids. It is
also rich in dietary fiber, proteins, calcium and other minerals to maintain healthy heart and
good gut health.

Sunfeast Special: ITC Sunfeast presents a range of Special cookies and creams.

Special cookies: Made with best quality wheat, cashew and butter, Sunfeast Special cookies
are baked with real butter and the finest ingredients to give a mouth-watering treat that makes
every moment special. Available in Cashew/ Butter/ Coconut.

Special Cream: Delicious value for money cream biscuits with a thick layer of cream
sandwiched between two biscuits. Available in Orange and Chocolate variants.




                                                 19
   CHAPTER 5


SCOPE OF WORK




       20
                                     SCOPE OF WORK

    The study would be of importance for the reader to understand the perception of the
Retailers people about ITC Sunfeast. It would give insight into their attitude towards the brand
and the prospect of the brand in the area of study. The standing of the brand when compared
with the other brands (Britannia & Parle) in the market would also find its place in the study.
       It will help to know market penetration of Sunfeast biscuit in Patna.
       It will help to know the retailers preference towards Sunfeast.
       It will help to identify potential market.
       It will help to increase the sale of product.

Scope of the project
 1. Researcher‟s point of view.
 2. Organization‟s point of view.

Researcher point of view:
       Project help to upgrade the knowledge.
       It helps to give the practical exposure.
       It gives the information about which kinds of products and services offered to the
        Retailers.
       It gives detail information about current situation of the product in the market.
       It helps to analyze constantly, what is happening in the market.
       It helps to build the confidence in researcher.
       It helps to apply the proper research techniques to make accurate analysis and
        interpretation.




                                                   21
Organization point of view:


        It helps to identify satisfaction level of the Retailers.
        It helps in decision making process related to marketing.
        It helps to achieve goals and objectives of the organization.
        It helps to decide the future plans and policies.
        It helps to identify the strength, weakness, opportunities and threats of the
         organization.
        It helps to overcome the uncertainties related with the raw material and the
         transportation.



    Geoeraphical area under this study was restricted to a particular area of Patna such as
        Sabji bagh,Kadamkuan,Ashok rajpath,Boring road,Exhibition road, Frazer road,
        S.P.Verma road, Rajapul, Talimpur,S.K.Puri,Lodipur, Salimpur.


    Time: Duration of summer project was 1 June 2009 to 30 July 2009.




                                                 22
     CHAPTER 6


OBJECTIVE OF THE
    PROJECT




         23
                         OBJECTIVE OF THE PROJECT:

Main objective of this project is “Relative comparison on Sunfeast with Britannia &
Parle.”

To achieve the objectives I divided objectives into following parts:

      To find the perception of the Retailers about Sunfeast, Britannia & Parle biscuit.

      To know the influencing factor of retailers behind purchase of Sunfeast, Britannia &

       Parle biscuit.

      To identify and forecast market for Sunfeast, Britannia & Parle.




                                               24
  CHAPTER 7



  RESEARCH
METHODOLOGY




      25
                               RESEARCH METHODOLOGY

 SOURCES OF DATA COLLECTION:

 In dealing with any real life problem it is often found that data at hand are inadequate, and
 hence, it becomes necessary to collect data that are appropriate. Data is unprocessed
 information. It is the basic factor which gives the information about the research problem
 under study. It is of two types:
     1. Primary Data
     2. Secondary Data

Primary data are those data, which are collected a fresh and for the first time. It can be
collected either through experiment or through survey. We have collected it through sample
survey for this study using questionnaire/ schedule and observation. As per our problem
definition and objective of the study questionnaire method is most appropriate for collection of
primary data.

Secondary data are those data, which have already been collected by someone. It may be
published or unpublished. The data for this study has collected through the company authority,
through internet and through books.

RESEARCH INSTRUMENT

This research study includes the following research instruments:
       Questionnaire
       Survey

 RESEARCH DESIGN:

This study is based on Descriptive research to study the psychology and mentality of
consumers towards different offer/scheme provided by the retailers through questionnaire and
sample survey.




                                              26
SAMPLING DESIGN

Sampling design is a definite plan for obtaining a sample from a given population. It refers to
the technique or the procedure the researcher would adopt in selecting items for the sample.
Since our population is very large, this includes all the customers who were present in market
during the time of survey. So it is not possible to conduct census survey due to limited time
period. Thus, for this study we are conducting sample survey.

 I have considered the following steps while developing a sampling design:

      Type of universe: The universe or the population in research is infinite. Due to limited
       time period I cannot take all the retailers as universe or population.

      Sample frame: As per convenience, I have selected area and their retailers who were
       available during survey.

      Sampling unit: Sample unit consists of those retailers who were present at the time of
       survey inside those selected area & their outlets.

       Sample size: I have selected 250 retailers as sample size for this study.

      Research area: Research area is restricted to a particular area of Patna only.

      Sampling technique: I have used Non Probability Sampling techniques for
       Descriptive Research design. To construct a sample frame I have chosen Non
       Probability Sampling design. Under this I have selected convenience sampling.

I have collected Data from 250 outlets of 10 different routes which describe the perception &
buying behavior of retailers of ITC Sunfeast biscuit in comparison to Parle & Britannia. Also I
have fill up questionnaire by interview of retailers (store keepers) which describe current
performance of ITC Sunfeast & its competitors, service information, buying influence,
product quality etc.




                                               27
     CHAPTER 8



DATA COLLECTION
       &
 DATA ANALYSIS




         28
                  DATA COLLECTION & DATA ANALYSIS

   1. What are the various biscuits brand you have?


             Brand Name        Parle      Britannia       Sunfeast    Others
             No. of outlets     250         240             195        150




                                           Figure 1

             (Note: Total no. of outlets/relailers-250)

INTERPRETATION:

This graph shows the presence of biscuit brands in the outlets surveyed. There were total of
250 outlets surveyed in which Parle was available in all 250 outlets, Britannia was in 240
outlets, Sunfeast was in 195 outlets & others brands were available in 150 outlets. Thus, it
shows that Sunfeast was far behind than its competitors (Parle & Britannia) with respect to
availability.




                                             29
         2. Which biscuit of economical range & premium range sale more in your
            outlet?

                                        Economical Range

              Brand name          No. of retailers         Percentage
                 Parle                  130                   52%
               Britannia                 80                   32%
                Sunfeast                 40                   16%




                                        Economic range
                             Sunfeast
                              16%


                                                                        Parle
                                                                        52%



                Britannia
                  32%




                                             Figure 2

(Note: Total no. of outlets/relailers-250)

INTERPRETATION:
This graph shows the highest demanded brand of biscuit was Parle in case of economical
range & Sunfeast stands third position.




                                               30
                                        Premium range
              Brand name           No. of retailers        Percentage
                 Parle                    90                  36%
               Britannia                 120                  48%
                Sunfeast                  40                  16%



                                        Premium Range


                             Sunfeast                          Parle
                              16%                              36%




                     Britannia
                       48%




                                             Figure 3

(Note: Total no. of outlets/relailers-250)


INTERPRETATION:
This graph shows the highest demanded brand of biscuit was Britannia in case of premium
range & Sunfeast stands third position.




                                               31
3. What are the criteria while ordering a particular brand of biscuits?

          Influencing factors            No. of Retailers    Percentage
          Price                          80                  32%
          Customer demand                125                 50%
          Brand name                     25                  10%
          Others                         20                  8%




                                             Figure 4

(Note: Total no. of outlets/relailers-250)


INTERPRETATION:

This graph shows the maximum no. of retailers was influenced by customer demand to keep a
particular brand of biscuit.




                                               32
4. What is your first preference in biscuit?

             Brand name             No. of retailers           Percentage
                Parle                     115                     46%
              Britannia                   110                     44%
               Sunfeast                    25                     10%




                              Retailers preference Vs Brand

                                 Sunfeast
                                  10%


                                                                    Parle
                                                                    46%



                  Britannia
                    44%




                                             Figure 5



(Note: Total no. of outlets/relailers-250)

INTERPRETATION:

This graph shows that the maximum no. of retailers preferred Parle & Britannia respectively
& only 10% of retailers preferred Sunfeast.




                                               33
5. Do you think advertisement help to increase the sales?

                Particulars              No. of retailers          Percentage
                   Yes                        245                     98%
                    No                          5                      2%
                  Total                       250                    100%




                                             Figure 6

(Note: Total no. of outlets/relailers-250)


INTERPRETATION:

This graph shows that the maximum no. of retailers were agreed to the importance of the
advertisement is essential for sale.




                                               34
6. If yes then according to you which mode of advertisement is more effective?




            Mode of advertisement         No. of retailers        Percentage
                     TV                         155                  63%
                 Newspaper                       35                  14%
                    Poster                       40                  17%
                  Hoarding                       15                   6%




                          Retailers Vs Advertisement
                                       Hoarding
                                         6%
                          Poster
                           17%




             Newspaper
               14%
                                                                        TV
                                                                       63%




                                           Figure 7




INTERPRETATION:

This graph shows that the advertisement through TV (63%) is more effective to assist retailers
to sell a particular brand of biscuits.




                                             35
7. What is the frequency to visit at outlets by the Sales person?

              Frequency to visit at          No. of retailers       Percentage
                    outlets
                     Daily                            0                    0
                   Weekly                           200                  80%
                  Fortnightly                        45                  18%
                Once in a month                       5                   2%




                      Sales persons Vs frequency to visit outlets
                                               Once in a
                                                month
                                                 2%

                  Fortnightly
                     18%




                                                                Weekly
                                                                 80%



                                             Figure 8

(Note: Total no. of outlets/relailers-250)


INTERPRETATION:

This graph shows that the maximum no. of sales person (80%) visits their outlets weekly.




                                               36
8. What is the supply condition of Sunfeast product in comparison with Britannia &
Parle?

         Brand name                      On time           Good          Fair     Need to improvement
             Parle                             245         5             0        0
           Britannia                           225         25            0        0
           Sunfeast                             35         40            20       155




                                                Brand Vs Supply condition
                                         245
                                                225
                No. of Retailers




                                   250
                                   200                                                155
                                   150
                                   100
                                                 35        2540            20
                                    50                 5             0 0        0 0
                                     0
                                                                                            Parle
                                                                                            Britannia
                                                                                            Sunfeast




                                                      Supply condition


                                                                  Figure 9

(Note: Total no. of outlets/relailers-250)

INTERPRETATION:

This graph demonstrates the feedback of the brands in the term of supply conditions. As a
result, this graph clearly states that Sunfeast needs improvement on its supply chain
conditions.

                                                                    37
 9. Are you satisfied with scheme /offer of Sunfeast in comparison with Britannia &
Parle?




              Particulars            Sunfeast biscuit      Percentage
              Yes                    85                    34%
              No                     165                   66%
              Total                  250                   100%




                      Scheme/ offer of Sunfeast Vs Britannia & Parle



                                                                Yes
                                                                34%




                           No
                          66%




                                             Figure 10

(Note: Total no. of outlets/relailers-250)

INTERPRETATION:

This graph shows that only 34% of retailers said that they are satisfied with scheme /offer of
Sunfeast in comparison with Britannia & Parle.


                                               38
10. If yes then which scheme/offers attracts most?



        Scheme/offers               Sunfeast               Percentage
        Discount                    20                     23%
        High margin                 50                     59%
        Low price                   10                     12%
        Combo pack                  05                     06%
        Total                       85                     100%




                              Scheme/offers Vs Sunfeast
                                      Combo pack
                        Low price        6%               Discount
                          12%
                                                            23%




                     High margin
                        59%



                                          Figure 11


INTERPRETATION:

This graph shows that maximum no. of retailers (59%) attract towards Sunfeast biscuit due to
high margin.




                                               39
11. Do you feel that Sunfeast provides better varieties in comparison with Britannia &
Parle?




            Particulars              Sunfeast biscuit      Percentage
            Yes                      188                   75%
            No                       62                    25%
            Total                    250                   100%




                                   Varities Vs Sunfeast

                           No
                          25%




                                                                   Yes
                                                                   75%




                                             Figure 12

(Note: Total no. of outlets/relailers-250)

INTERPRETATION:

This graph shows that maximum no. of retailers (75%) feel that Sunfeast provides better
varieties than Britannia & Parle.



                                               40
  12. Which company’s biscuit you maximum sale?




          Brand                     No. of retailers        Percentage
          Sunfeast                  16                      06%
          Britannia                 122                     49%
          Parle                     112                     45%




                                       Brand Vs Sale
                                                 Sunfeast
                                                   6%

                    Parle
                    45%




                                                                  Britannia
                                                                    49%




                                             Figure 13

(Note: Total no. of outlets/relailers-250)

INTERPRETATION:

This graph shows that maximum no. of retailers sales Britannia (49%) & Parle (45%)
respectively & only 6% of retailers sales Sunfeast.


                                               41
   CHAPTER 9



OBSERVATIONS
     &
  FINDINGS




      42
                         OBSERVATIONS & FINDINGS


   The availability of Parle and Britannia biscuits in different outlets is very good in
    comparison with Sunfeast.
   The highest demanded brand of biscuit is Parle (in case of economical range) &
    Britannia (in case of premium range).
   Demand of customer is main criteria of retailers while ordering a particular brand of
    biscuits.
   The maximum no. of retailers prefers Parle & Britannia respectively & only 10% of
    retailers prefer Sunfeast.
   Most of the retailers think that advertisement helps to increase the sales. The
    advertisement through TV (63%) is more effective to assist retailers to sell a particular
    brand of biscuits.
   Most of the sales person visit to outlets weekly.

   A supply chain condition of Sunfeast is not up to the mark.

   Most of retailers say that they are not satisfied with scheme /offer of Sunfeast in
    comparison with Britannia & Parle.

   The maximum no. of retailers attract towards biscuits brand due to high margin.

   The maximum no. of retailers feels that Sunfeast provides better varieties in
    comparison with Britannia & Parle.
   The maximum no. of retailers sales Britannia (49%) & Parle (45%) respectively &
    only 6% of retailers sales Sunfeast.




                                            43
  CHAPTER 10

LIMITATIONS




      44
                                     LIMITATIONS

These are the following limitation which was noticed during the project work.

      The survey was limited to a particular area of Patna only.

      Time is the big constrain during sample survey. Due to lack of time it is not possible to
       take the response of all retailers who was present in the market.

      Research has been carried on time span of two months.

      Research based on personal opinion of the respondents (retailers) which may vary
       depending upon their personal view.

      Some of the retailers were not cooperative they were not serious about the questions
       which I asked to them.

      The entire retailers are not included in sample survey.

      The primary data is collected from only those retailers who were present in the market.

      Some of the retailers were not able to respond due to lack of understanding.

      Most of the retailers were taking more time to fill a questionnaire.

      Some of retailers had behaved very rudely during interaction.

      The responses of some retailers were not satisfactory. They were giving irrelevant
       information.

      It is difficult to draw a concrete conclusion because of several factors that affect
       particular retailer.




                                              45
     CHAPTER 11


   SUGGESTIONS
        &
RECOMMENDATIONS




         46
                SUGGESTIONS & RECOMMENDATIONS
   ITC should improve the supply condition of Sunfeast.
   Sale persons should get regular feedback from retailers and ensure that they should not
    face any problem.
   Various incentives like some free gifts, discount coupons, extra packs, combo offers
    etc. should be introduced to attract the customers and it will increase sell of Sunfeast
    biscuit.
   The quality should be maintained if the quality standard is not maintained it would
    affect the sale of Sunfeast and its brand name also.
   If company gives more margins to retailers for some time then they can increase the
    sales of products.
   ITC should have to more focus on advertisement of their all flavor of biscuits because
    Britannia & Parle not doing so.
   ITC Sunfeast packaging is quite good but it may differentiate packaging from their
    competitor to attach cultural art on the packet.
   ITC is facing close competition from Britannia & Parle due to SKU variant, so
    improvement of this area may help to accelerate the growth of Sunfeast biscuits.
   Regular analysis of competitor strategy may help the Sunfeast to grow consistently.
   The frequency of window display scheme should be improved.
   ITC should equally focus on rural area where 64% of Indian population lives. It may
    help Sunfeast to become the market leader.
   ITC should implement the offer for their consumer to return empty biscuits packs to
    get exclusive gift. It makes eco friendly of consumer and reducing the price of
    manufacturing.
   Hoarding of Sunfeast brand with brand ambassador make great impact on consumer
    purchasing psychology.
   I strongly emphasis that if we capture the rural market it may helpful for Sunfeast to
    become a market leader in India.



                                            47
   CHAPTER 12


CONCLUSION




     48
                                   CONCLUSION

   Britannia & Parle equally is treating as market leaders in biscuits industry.
   Sunfeast is capturing rapidly the market at Patna due to flavor variant and reasonable
    pricing policy.
   The flavor of Sunfeast biscuits is more appreciated among the consumer.
   The success key of growing biscuits industry is regular advertisement, and demand of
    readymade food.
   Scheme & Offer gives new identity to products in biscuits industry.
   The awareness & preference of product among retailers changes rapidly.
   Biscuits industry has huge opportunity to grow in both urban and rural areas.




                                           49
   CHAPTER 13

BIBLIOGRAPHY
      &
 REFERENCES




       50
                       BIBLIOGRAPHY & REFERENCES

Books:

      Research Methodology-

         C.R. Kothari, New age international publishers, 2nd Edition [Page no-2, 14, 15, 55,
   56, 58-60, 95,100,106, 111,112]


REFERENCES:

Website:
   www.google.co.in
      Link-
      http://www.google.co.in/search?hl=en&safe=off&q=itc+sunfeast&meta=&aq=f&oq
                                                      [Date 15/09/09, Time 11:00a.m.]

      www.itcportal.com

       Link- http://www.itcportal.com/the_itc_profile/itc_profile.html

                http://www.itcportal.com/sets/foods_frameset.htm

                http://www.itcportal.com/sets/itc_frameset.htm
                                                      [Date 22/09/09, Time 11.00a.m.]

      www.scribd.com

       Link - www.scribd.com/doc/12936866/sunfeast-projct-report

                                                      [Date 28/09/09, Time 6:30p.m.]

      www.chllibreeze.com

       Link- http://www.chillibreeze.com/articles_various/fmcg-in-india.asp

                                                      [Date 28/09/09, Time 6p.m.]




                                             51
  Chapter 14

ANNEXURE




      52
                                              ANNEXURE

QUESTIONNAIRE FOR RETAILERS

Please Mark () in the respective option:

 Name of outlet:          ________________________________

            Address:       ________________________________

       Contact no.:       ________________________________

1. What are the various biscuits brand you have?

    a) Sunfeast        b) Britannia      c) Parle     d) Others

2. Which biscuit of economical range & premium range sale more in your outlet?

    Brands     Economical Range               Premium Range
    Sunfeast:
    Britannia:
    Parle:
    Others:

3. What are the criteria while ordering a particular brand of biscuits?

   a) Price     b) Customer demand               c) Brand name    d) Others

4. What is your first preference in biscuit?

 a) Sunfeast      b) Britannia        c) Parle

5. Do you think advertisement help to increase the sales of biscuit?

   a) Yes                             b) No

6. If yes then according to you which mode of advertisement is more effective for biscuit?

   a) TV      b) Newspaper       c) Poster d) Hoarding



                                                     53
7. What is the frequency to visit at outlets by the Sales person?

   a) Daily b) Weekly c) fortnightly d) Once in a month

8. What is the supply condition of Sunfeast in comparison with Britannia & Parle?

   a) On time b) Good c) Fair d) Need to improvement

9. Are you satisfied with scheme /offers of Sunfeast in comparison with Britannia & Parle?

   a) Yes                 b) No

10. If yes then which scheme/offers attracts most?

   a) Discount    b) High margin c) Low price d) Combo pack

11. Do you feel that Sunfeast provides better varieties in comparison with Britannia & Parle?

   a) Yes         b) No

12. Which company‟s biscuit you maximum sale?

    a) Sunfeast    b) Britannia    c) Parle

13. Any suggestion:       ________________________________

                          ________________________________




      Date:

      Place:                                             Signature:




                                              54
55
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