A Project Report on Itc

A PROJECT REPORT ON

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ITC PVT (I) LTD.Project Title : Report on Market research on biscuit Industries .Proposed By : Abhishek Mittal B.Com, PGP+SMU MarketingInstitute : Indira School of career studies Waked, pune Maharastra Project Guide Project Submitted By Mr. Ramesh Malav Abhishek MittalACKNOWLEDGEMENTI would sincerely like to thank Mr. Ramesh malav for his immense contribution & support to execution of my project In ITC Pvt.(I) Ltd.I would also like to thankMr. Suresh (DSO) Nayapura, Kota&Mr. Manish (DSO) Nayapura, KotaMy appreciation to the Family of ITC Pvt.(I) Ltd would be incomplete if I dont thank

Mr. Mahesh makhija (Distributer, KOTA)

& their sales team.DECLARATION

I Abhishek mittal hereby declare that this project report is done by me as per my skills and my knowledge during academic year 2010-12. This project is not published previously or written by any other person to substantial extend has been accepted for the award of any other degree or diploma of any other institute except where due acknowledge has been made in the text.

ABHISHEK MITTALDate:-

Place:-

INDEX

Sr.No.TopicPage No.

1.Introduction5-6

2.History7-10

3.Executive Summary 11

4.Major player of biscuit company12-13

5.Product detail of ITC 14-28

6.Route wise detail in Tabular Form34-39

7.Questionnaire40 - 48

8.Recommendation49

9.Bibliography50

INTRODUCTION

About ITC :-

ITC is one of India's foremost private sector companies with a market capitalisation of over US $ 33 billion and a turnover of US $ 7 billion. 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 ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agi-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.

As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part."

ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT services and solutions to leading global customers. ITC Infotech has carved a niche for itself by addressing customer challenges through innovative IT solutions.

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 24,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 4, 05,000 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 statement: "Enduring Value. For the Nation. For the Shareholder."

Biscuit industry contribute Rs 8,000 crore to the FMCG industry and provide a vast opportunity for growth, as the per capita consumption of biscuits is less than 2.1 kg in our country. India It is classified under two sectors: organized and unorganized. Apart from Big 3(Britannia, Parle, ITC) there are around 150 medium to small biscuit factory in India. The Industry is now facing problem from increase of raw material price. With Government VAT up to 12.5% has added to their woes. 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 achieved by the biscuit industry of India. Besides, the export of biscuits will also surpass the target and hit the global market successfully.

History:-ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianite, the name of the Company was changedfrom Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970and then to ITC. 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-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001.The Company now stands rechristened 'ITC Limited'.The Companys 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.

Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of theCigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company.

ITC'sPackaging & Printing Businesswas set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house.

In 1975 the Company launched itsHotels businesswith the acquisition of a hotel in Chennai which was rechristened'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India.

In 1979, ITC entered thePaperboards businessby promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed toSurya Nepal Private Limited(Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form thePaperboards & Specialty Papers Divisionin November 2002.

Also in 1990, leveraging its agri-sourcing competency, ITC set up theAgri Business Divisionfor export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brandPaperkraftwas launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under brandClassmatein 2003.Classmateover the years has grown to becomeIndias largest notebook brandand has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under theClassmatebrand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launchedIndia's first environment friendly premium business paperunder thePaperkraftBrand.Paperkraftoffers a diverse portfolio in the premium executive stationery and office consumables segment. Paperkraft entered new categories in the office consumable segment with the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009.

ITC also entered the Lifestyle Retailing business with theWills Sportrange of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to includeWills Classic formal wear(2002) andWills Clublife evening wear(2003). ITC also initiated a foray into the popular segment with its men's wear brand,John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event -Wills Lifestyle India Fashion Week- that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers.

In 2000, ITC spun off its information technology business into a wholly owned subsidiary,ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC Infotech is one of Indias fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment.

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 brandsmint-oandCandymanconfectionery andAashirvaadatta (wheat flour). 2003 witnessed the introduction ofSunfeastas the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category withBingo!in 2007. In eight 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.

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in theSafety Matchesinitiative. ITC now markets popularsafety matchesbrands likeiKno, Mangaldeep, Aim, Aim MegaandAim Metro.

ITC's foray into the marketing ofAgarbattis (incense sticks)in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands includeSprihaandMangaldeepacross a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

ITC introducedEssenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range underEssenza Di Willsprovides 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 andVivel De Wills & Vivelrange of soaps in February andVivelrange of shampoos in June 2008.

CHAIRMAN

Y C Deveshwar

EXECUTIVE DIRECTORS

Nakul AnandP V DhobaleK N Grant

NON-EXECUTIVE DIRECTORS

A BaijalS BanerjeeAV Girija Kumar

S H KhanS B MathurD K Mehrotra

H G PowellP B RamanujamAnthony Ruys

Basudeb SenK VaidyanathB Vijayaraghavan

ITC Vision

Sustain ITC's position as one of India's most valuable corporationsthrough world class performance, creating growing value for the Indianeconomy and the Companys stakeholders

ITC Mission

Sustain ITC's position as one of India's most valuable corporationsthrough world class performance, creating growing value for the Indianeconomy and the Companys stakeholdersLIST OF THE PLAYERS IN THE INDUSTRYThe major Brands of biscuits are - Britania, Parle Bakeman, Priya Gold,Elite, Cremica, Dukes, Anupam, Horlicks, Craze, Nezone, besides various regional/State brands.

COMPETITIVE BRANDS: Britannia, Parle, ITC foods, Surya Foods others

MAJOR PLAYERS IN THE BISCUIT INDUSTRY

Regional bakery brands:

A few regional players have made a mark in their respective zone.

HARVEST

GOLD CREMICA PRIYA GOLD DUKES COOKIE MAN ANMOL MONGINIS BONN BISK FARM ELITE ANUPAM MODERN SABISCO CHAMPION VEERMANI FOREIGN PLAYERS

Foreign players like United Biscuits and McVities have also entered the fray. However, these players have concentrated themselves in the super-premium and premium segments

PARLE COMPANY

In 1929 a small company by the name of Parle products emerged in British dominated India. The intent was to spread joy and cheer to children and adults alike, all over the country with its sweets and candies. Parle Products has been India's largest manufacturer of biscuits and confectionery, for almost 80 years. Makers of the world's largest selling biscuit, Parle-G, and a host of other very popular brands, the Parle name symbolizes quality, nutrition and great taste. With a reach spanning even the remotest villages of India , the company has definitely come a very long way since its inception. Many of the Parle products - biscuits or confectioneries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit market and a 15% share of the total confectionary market in India,. Major products are Parle - G, Hide and Seek, Krackjack, Hide & Seek, Milano,Magix, Digestive, Marie Monaco Parle Marie, Kreams, Milk Shakti, Parle 20-20 Cookies, Nimkin, etcBRANDS

2003, ITC foraying into the segment, a lot of that changing ed. Before entering the segment, ITC dug into market research. Research revealed that the category had gaps which ITC could settle into. Findings revealed that consumers wished to taste new and innovative products. Some other range of sun feast biscuit Sun feast Golden Bakery Sun feast 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. Sun feast 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 Magic of 2 - A perfect balance of energy that aids physical strength and mental ability. Strawberry &chocolate Cream The first of its kind cream biscuit with special strawberry flavor crystals that will keep the creamy flavor linger on A special delight for all those chocolate lovers List of product and brand Cigarettes:

W. D. & H. O. WillsW.D & H.O.Wills (Australia) Ltd began manufacturing tobacco products in 1913 at its Raleigh rural but these days Kensington is regarded as one of the more central Sydney suburbs, located only 5 kilometres from the city centre. The site played host to a manufacturing facility for 72 years.

In 1945 an estate of 16 acres was purchased at East Bentleigh, Melbourne, with a further 22 acres purchased later and the Virginia Park manufacturing branch was established

Increasing competition

The 1950s were to be one of the most successful decades in the companys history and it enjoyed a peak of 83 per cent market share in 1954. But this was also a period of increased competition as Phillip Morris and Rothmans entered the Australian tobacco market.

Tougher times

By 1972, increased competition meant that the companys market share had slipped to 39%. By the time tobacco advertising was banned on Australian radio and television in 1976, Wills' market share had fallen a further 6%.

New beginnings

In 1985 Wills combined the separate factory operations in Sydney and in Melbourne into one site at Pagewood, Sydney which took on the name Virginia Park. In 1989 W.D & H.O.Wills (Australia) became a subsidiary of the British American Tobacco Industries group of companies.

The big change

In 1999 the company faced its most historic event to date when majority shareholder British American Tobacco merged with global competitor Rothmans International. Rothmans in Australia and Wills merged to form the wholly-owned subsidiary British American Tobacco Australia.

To satisfy regulatory requirements at the time, some 16 per cent market share was divested by way of a sale of trademarks to Imperial Tobacco Australia. The merger left British American Tobacco Australia, Phillip Morris and Imperial Tobacco Australia as the three players in the Australian tobacco market.

British American Tobacco Australia is still the market leader, with 45.8 per cent market share as at December 2010.

Park factory in Kensington, Sydney. At the time, the 35 acre site was considered to be quite

Gold Flake Kings,

Gold Flakeis a widely-soldcigarettebrand in India and Pakistan. It is sold in various varieties, including Gold Flake Kings (84mm), Gold Flake Kings Mild (84mm), Gold Flake Kings Lights (84mm) and Gold Flake. It is a well-positioned brand in India . This brand is owned, manufactured and marketed byITC Limited, the leading cigarette maker in India.

Other popular cigarette brands owned by ITC areWills&Scissors. Gold Flake is ITC's middle level brand in terms of price. However the Kings, Lights and Mild varieties are more expensive with pricing about the same as Wills Classic varieties of cigarettes. The single largest brand in the country in value terms (approx 14% of the US$150 million market) is Wills Navy Cut, which was launched in July 1963.

Wills Gold Flake was discontinued in the UK in 1986 but continues to be sold in the Republic of Ireland. It is regarded there as one of the finest Virginian cigarettes on the market, though can be difficult to find.

Gold Flake Premium,

Inflation is coming down but its not coming down if you are smoker. Cigarette manufacturer,ITChas hikedprices ofGold Flake Premium inMaharashtra, reportsNewsWire18s correspondent Manuja Pandey.

ITC has hikedGold Flake Premium price by Rs 1 to Rs 28 per pack of10 cigarettes. The company hiked pricesa couple of days back.

It hadlast hiked price of Gold Flake Premium in September last year. The brand contributes around 14-15% to the companys volume sales. By value, it is around 20%.

Navy Cut,The term 'Navy Cut' refers to how RN sailors [C19th and C20th to 1953] would wind twine around rolls of tobacco leaves allowing them to mature under compression, and then slice off the end shredding the tobacco.

John Player & Sons, Ltd of Nottingham put together logos for an advertizing campaign ca 1891, and trademarked the results in 1893.

This was a combination of two earlier trademarks - the lifering bearing the words "Player's Navy Cut" dating from 1888 and the bearded sailor - originally an artist's conception for a campaign registered around 1891 for the "Jack Glory" brand by William Parkins & Co of Chester. Foods: (Kitchens of India;Ashirvaad; At ITC Aashirvaad, extra care is taken to keep things as natural as possible. The way Mother Nature intended for them to be. Thats why youll see that a lot of traditional, sometimes even cumbersome methods that the world has long left behind are adopted, so that you can have a taste of the authentic. In our quest to provide you wholesome goodness, the finest of ingredients are sourced, directly from the farmers through our e-choupals. ITCs e-choupal initiative, aims to confer the power of expert knowledge on even the smallest individual farmer. Thus enhancing his competitiveness in the global market. A walk through our range our products might well seem like a journey through the good old world. A world that found happiness in harmonising with nature.

Aashirvaad Atta was launched on 27th May 2002 and within a short span of 7 years has become the number one in branded packaged atta across the country. Aashirvaad Atta is made from the choicest grains - heavy on the palm, golden amber in colour and hard in bite. It is carefully ground using modern 'chakki - grinding' process for the perfect balance of colour, taste and nutrition which also ensures that Aashirvaad atta contains 0% Maida and is 100% Sampoorna Atta. The dough made from Aashirvaad Atta absorbs more water, hence rotis remain soft longer. The wheat for Aashirvaad Atta is sourced directly from farmers through ITC's e-choupals.

Select - 100% MP Sharbati attaAashirvaad Select 100% MP Sharbati atta comes from the plush, fertile soil of Madhya Pradesh, tended by the right amounts of sunshine and rainfall. The land here truly sprouts gold. The gold that we call sharbati. The sharbati wheat is sourced directly from farmers through ITCs e-choupals and then blended using the traditional chakki-grinding method to give you that superior, discerning taste that you well deserve.

Whole Wheat Atta - 0% maida and 100% Atta:Aashirvaad Whole Wheat Atta has 0% maida and 100% atta. This means you serve soft, fluffy rotis and a whole lot of health and happiness. Aashirvaad Atta with Multigrains :From the stable of Indias most trusted Atta brand comes a new and improved variety Aashirvaad Atta with Multigrains. This all-new variant is designed to provide nourishment for people of all ages and is an integrated mix of six different grains wheat, soya, channa, oat, maize & psyllium husk which gives a better and healthier option for the consumers. Aashirvaad Atta with Multigrains is an excellent source of vitamins which is vital in strengthening immunity and ;extra protein content to improve body strength. The extra fibre makes your food easier to digest; low content of saturated fat keeps your heart smiling all through the day and above all, still retaining the same great taste!!The product is available in select citiesCandyman;ITC launched the'Candyman'range of confectioneries in August 2002. Led by the'Candyman Fruitee Fun'range of assorted fruit flavours ('Wild Banana', 'Pineapple Punch', 'Orange Josh'and'Mango Delite'), the'Candyman'portfolio now includes deposited candy products like'Candyman Butterscotch Licks'and'Candyman clairs'(Choco flavoured as well as Vanilla Cream centre inside a Butterscotch outer shell). The coffee toffee segment also saw the successful launch of'Candyman Cofitino'in November 2005.

The brand was further strengthened with the launch of'Candyman Natkhat Mango'and'Candyman Maha Mango'. In line with the strategy to provide innovative flavours and formats to consumers,Candyman Mango Lickswas launched in June 2007,Candyman Lacto Creme Centrein June 2008 andCandyman Toffichoo Strawberryin early 2009.Candyman Lacto Creme Centeris the only Lacto with a yummy cream filled center, andCandyman Toffichoois a luscious fruit flavored soft and chewy toffee. The'Candyman'range of confectionery is targeted at fun-filled, naughty kids who seek a delightful candy experience through a range of candy types and flavours.

www.mycandymanclub.comwas launched in July 2004 and now has a loyal, young user-base. Targeted at young children, the website is populated with games, quizzes, downloads and other fun activities.

Bingo;ITC Limited - Foods Division today announced the launch of its new snacks brand Bingo, which marks the company's foray into the fast growing branded snacks segment. The launch of Bingo represents ITC Foods' fifth major line of foods business after the highly successful Staples, Biscuits, Ready-to-Eat and Confectionery businesses.

Bingo is strategically timed around the World Cup to leverage the tremendous popularity that such leisure and cocktail snacks will find among cricket lovers in the country. So cricket lovers can enjoy their favourite matches while savouring an all-new range of innovative Bingo snacks during this World Cup.

The category of snacks is characterised by a few organised players with limited offerings but the unorganised sector continues to rule the market. However, the organised sector is one of the fastest growing FMCG categories with an estimated growth rate of 30% annually.

The organised snacks category is sub-divided into the traditional segment (Bhujia, chanachur etc.), Western segment (potato chips, cheese balls etc.) and the newly established Finger snacks segment, which is an adaptation of traditional offerings to the western format.

The launch of Bingo is symbolic of ITC Foods' distinct approach of introducing innovative and differentiated products in a largely undifferentiated market place. The initial offerings from Bingo include an array of products in both Potato Chips & Finger Snacks segment. The Potato Chips offerings comprise of 4 innovative variants inspired by the snacking habits of different parts of the country as well as Masalas, Salted and Tomato flavours. Additionally a south-inspired dairy option has also been introduced under the potato chips offering.

The offerings under the Finger Snacks segment are equally unique presentations with innovative finger foods like the pakoda inspired Live Wires, Khakra inspired Mad Angles and the specially developed time pass snack in the form of Tedhe Medhe. Each offering under this segment is available in two variants making it a total of 6 products in the Finger Snacks portfolio.

Speaking on the foray into this new category,Mr. Ravi Naware, Divisional Chief Executive, ITC Limited - Foods Divisionsaid, "This is an exciting and fast growing category with a big untapped market. We have extensively studied the market and our product development team has created products with variants that will hold tremendous appeal to the Indian consumer. We are confident that our retail distribution strength and our insightful understanding of consumers will help us redefine this category just like we have done in other categories. An added source of advantage is the strong farm linkages that ITC has developed for sourcing the selected grades of potatoes that go into the making of the chips."

Bingo will own the platform of a youthful and innovative snack offering. The snacks will be available in packs priced at Rs. 5/- and Rs. 10/- Bingo will soon be available nationally across a majority of towns and cities.

Mr. Hemant Malik, Head - Marketing, ITC Limited - Foods Division talking about marketing plans for the product, said "The new brand will leverage the retail and marketing expertise of ITC Foods to establish reach across the target markets. The communication strategy encompasses a multi-media campaign for the entire product range including the use of new media for enhanced visibility. A spate of on-ground promotions distinctly communicating the product attributes and brand essence will further supplement Bingo's communication strategy."

Yippee, ITC has launched noodles under its Sunfeast brand in Chennai, Coimbatore and Kerala. Of late, FMCG compnaies like GlaxoSmithKline and Hindustan Unilever and private labels like Big Bazaar's Tasty Treat have entered this segment.

Chitranjan Dar, divisonal chief executive, ITC Foods. said: "We are looking to tap at synergies. While pasta as a category is predominant in larger cities, noodles is a more universal offering and in that sense is a more intense catgeory," explains Dar. The instant noodles maket in India is pegged at Rs 1,200 crore and is seeing a 15-20% growth year-on-year.

Clearly, the huge market opportunity is a big pull for players like ITC. "Noodles is a big growth market that has a limited competitive set at the moment."

ITC is planning a national rollout of Sunfeast Yippee! soon. The company is also planning to introduce more flavours in noodles within the next 8-10 months," says Dar. Sunfeast Pastabrands in Ready to Eat, Staples, Biscuits, Confectionery, Noodles and Snack Foods); Apparel: (Wills LifestyleandJohn Playersbrands);

ITC's Lifestyle Retailing Business Division has established a nationwide retailing presence through itsWills Lifestylechain of exclusive specialty stores.Wills Lifestyle, the fashion destination, offers a tempting choice ofWills Classicwork wear,Wills Sportrelaxed wear,Wills Clublifeevening wear, fashion accessories andEssenza Di Wills- an exclusive range of fine fragrances and bath & body care products andFiama Di Wills- a range of premium shampoos and shower gels.Wills Lifestylehas also introducedWills Signaturedesigner wear, designed by the leading designers of the country.

With a distinctive presence across segments at the premium end, ITC has also establishedJohn Playersas a brand that offers a complete fashion wardrobe to the male youth of today. With its brands, ITC is committed to build a dominant presence in the apparel market through a robust portfolio of offerings.

Personal care: ;In line with ITC's aspiration to be India's premier FMCG company, recognised for its world-class quality and enduring consumer trust, ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC has already launched an array of brands, each of which offers a unique and superior value proposition to discerning consumers. Anchored on extensive consumer research and product development, ITC's personal care portfolio brings world-class products with clearly differentiated benefits to quality-seeking consumers.ITC's Personal Care portfolio under the'Essenza Di Wills', 'Fiama Di Wills', 'Vivel UltraPro', 'Vivel'and'Superia'brands has received encouraging consumer response and is being progressively extended nationally.

ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and benchmarked manufacturing practices. Contemporary technology and the latest manufacturing processes have combined to produce distinctly superior products which rank high on quality and consumer appeal.

Extensive insights gained by ITC through its numerous consumer engagements have provided the platform for its R&D and Product Development teams to develop superior, differentiated products that meet the consumer's stated and innate needs. The product formulations use internationally recognised safe ingredients, subjected to the highest standards of safety and performance.

[Stationery: (ClassmateandPaperkraftbrands)ITC made its entry to the education and stationery business with its Paperkraft brand in the premium segment in 2002; and later expanded into the popular segment with its Classmate brand in 2003. By 2007, Classmate became the largest Notebook brand in the country. Together, Classmate and Paperkraft offer a range of products in the Education & Stationery space to the discerning consumer, providing unrivalled value in terms of product & price.

Classmate and Paperkraft have become a natural extension of the consumer. Meticulous understanding of consumer needs helped creating a relevant and comprehensive portfolio satisfying the needs of different sets of consumers.

ITC is the manufacturer of India's first Ozone treated environment friendly Elemental Chlorine Free (ECF) pulp, paper and paperboard. It blends its knowledge of image processing, printing and conversion garnered from Packaging & Printing Business with its brand building and trade marketing & distribution strengths resident in its FMCG business to offer superior value products to consumers.

Paperkraft Business paper and the papers used in Classmate and Paperkraft notebooks are superior in quality and environment-friendly. Other offerings available in education and Stationery range are safe and certified non-toxic.

Safety Matches and Agarbattis: [Ship(through ownership ofWIMCO);iKno;Mangaldeep;Aimbrands]

As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector, the Company commenced marketing Agarbattis (Incense Sticks) sourced from small-scale and cottage units in 2003. This Business leverages the core strengths of ITC in nation-wide distribution and marketing, brand building, supply chain management, manufacture of high quality paperboards and the creation of innovative packaging solutions to offer Indian consumers high quality Agarbattis. With its participation in the business, ITC aims to enhance the competitiveness of the small and medium scale sectors through its complementary R&D based product development and strengths in trade marketing and distribution.

Mangaldeep Agarbattis are available in a wide range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Anushri and Mogra. New launches include Fragrance of Temple, Champa and Tarangini in an attractive pouch format.

The pouch format of packaging is increasingly becoming popular. Mangaldeep has launched three variants Champa, Tarangini & Malligai in the pouch format catering to various market needs. The products have received encouraging response from consumers.

Fragrance of Templeis a flagship sub brand in the Mangaldeep portfolio with Superior fragrance and high quality sticks in an industry-first canister pack. The canister pack also contains a metal agarbatti stand which has been highly appreciated by consumers.

Mangaldeep Dhoop, made with Natural Ingredients, is available in specific markets and is fast creating a key presence in North India. New launches include Sandal & Mogra variants as well as 3-in-1 offering in a single pack.

In line with ITC's Triple Bottom Line philosophy of contributing to the Nation's economic, environmental and social capital, Mangaldeep agarbattis are manufactured by small scale and cottage units, providing livelihood opportunities for more than 12,000 people. Six out of 17 Mangaldeep Agarbatti manufacturing units are ISO 9000 certified. Mangaldeep ASHA (Assistance in Social Habilitation through Agarbattis) is an ITC initiative to improve the quality of raw agarbatti production and provide better value realization for women rollers. Under the project, ITC has extended support to NGOs in Bihar, Tripura and Tamil Nadu, to set up agarbatti units, training village women in rolling agarbattis and employing them in these units. In the latest initiative, ITC signed a MoU with the Orissa Government-run Orissa Rural Development and Marketing Society (ORMAS) for marketing raw incense sticks in the state - a move that is expected to provide employment opportunities to over 3000 rural women.

Promotion at the launching timeThe brand is supported with Television campaigns across National and Vernacular media beginning August 2003 that is distinct, highlighting the product attributes, quality and the new first time in the market offerings from Sunfeast. During the launch phase, Consumer promotions will be conducted across retail outlets for every purchase of Sunfeast Marie & Sunfeast Cream Biscuits 75gms of Glucose Biscuits FREE. Promotion by advertisement differentiated advertisements, some which showed a complete cream world with cream rivers, cream mountains and cream trees, were targeted at kids watching cartoon channels. In April 2005, The company says the brand is now available in nearly 1.8 million outlets Well Sunfeast launched its major campaign. It signed on Hindi film actor, Shah Rukh Khan as its brand ambassador. Pricing models as compare to its competitors.. Essentially, Parle plays a high volume, low margin game. But Sunfeast look at a two-pronged strategy, High margins in cream variants and volumes from the Marie and Glucose segments. For instance, cream biscuits from Sunfeast cost Rs 10 for 100 grams. Parle, however, only charges Rs 5 for its cream variants. Except for Hide & Seek, all of Parle's products lie in the price range between Rs 4 and Rs 6 for 100 gram packs. Market Share of sunfeast Says Mr Ravi Naware chief executive of itc foods , "Seven per cent in less than three years is something that we could have only dreamt about."According to the AC Nielsen retail sales audit in March 2006, both Britannia and Parle have lost volumes. Britannia's shares have dropped from 35.8 per cent in 2004-05 to 30.5 per cent in May 2006 (volumes). Parle's shares have also dropped from 42.2 to 38.4 per cent in the same period. Even Priya Gold has seen a minor dip from 6.4 per cent to 5 per cent. ITC's Sunfeast has been a big gainer with its share increasing from 2.7 to 6.7 per cent. STRATEGIESItc campaign to school..IN a bid to reinforce its brand on kids, ITC Foods Ltd will soon cover more than 1000 schools across the country as part of its Sunfeast school programme.

Sunfeast learnings corroborate the fact that brands register better among kids compared to adults. "The objective was to build salience for the brand and familiarise the kids with the Sunfeast brand world and the Sunfeast mascot. This mascot has been successful with kids since they all enjoy interaction with the mascot. The Sunfeast school programme focuses on building the children's creativity through an opportunity to paint and win prizes. The interest in such programmes are introduced by leveraging the Sunfeast mascot and by conducting magic shows. The Sunfeast mascot is an animated figure of the Sun suggesting contentment, satisfaction and pleasure one would derive from the biscuits.IMPORTANT FACTORS:-

DISTRIBUTION CHANNEL :-

Objectives of the projectThe objective of this project is to find out the coverage of Sun feast Cookies in the IDC markets and its competitors Parle 20-20 .

Along this we also have to find out the ways to increase the sales of cookies in Kota regions.METHODOLOGY Personal site visits

Sufficient amount of time was spent at selected retailers to find out consumers response towards itcs brands vis--vis competitors brands. Also to assist the current salesmen in these routes to incite sales.

Personal interview Talks were initiated with the retailers about which of the itcs brands are performing & which are under performing & the reasons for them & their views if any.Need and Significance The need to conduct the above study arised when a drop in sales of Bingo & Cookies was reported in Kota. .Route wise detail and observations:-Report on IDC routes of Nayapura (District:-Kota)

Distributor: - M/s Tulsi Sales Agencies..

Average Sale: - 1, 75,000 (per month)Way of working of distributor:- He is having an exclusive van for Perfetti. He carries ready stock with him when he covers the market. He do four IDC route, from which he covers three routes weekly (cover these three routes in four days) and one fortnightly.

Route wise Detail:-

Route 1:- Sakatpura , kunhadi , Route in K.M.:- 30 K.M.

Total Sale: - Rs.21, 000 (retail: - Rs.5, 300, Wholesale:- Rs.15,700)

No. of shops cover: - 65Placement of Bingo on: - 20 shops

Placement of Cookies on: - 18 shops

Placement of Candyman on: - 12 shops

Placement of minto on: - 15 shops

Observation:-

1) Bingo is stronger then cookies on this route.

2) candy man is present but its presence is negligible on this route, candy man is selling on this route but it is not fast moving compare to our other products, demand of minto is more as compared to candy man on this route.

Route 2:- ladpura , rampura Route in K.M.:- 30 K.M. Total Sale: - Rs. 15000 (retail: - Rs.5000, Wholesale: - Rs.10000)

No. of shops cover: - 60Placement of bingo on: - 20 shops

Placement of cookies on: - 15 shops

Placement of candyman on: - 10 shops

Placement of minto on: - 10 shops

Observation:-

1) Placement of bingo is more then cookies.

2) Chlormint is present but its sale is less compare to our other product. Minto-fresh is present only on some pan shops because distributor of ITC pushed them with cigarettes but its demand is very less in the market, demand of minto-fresh is more compare to chlormint.

Route 3:- patanpole, chawni.Route in K.M.:- 30 K.M. (only patanpole is big area on this route)

Total Sale: - Rs.22, 000 (retail: - Rs.9, 900, Wholesale: - Rs.12, 100)

No. of shops cover: - 70Placement of Bingo on: - 25 shops



Placement of Minto-fresh on:- 12 shops

Observation:-

1) Like other routes Bingo is present in more in number on this route also.

2) Presence of Chlormint is negligible on this route.

.

Route 4:- Gumanpura , bajarng nagarRoute in K.M.:- 30 K.M.


No.of shops cover: - 60Placement of Bingo on: - 20 shops



Placement of Minto-fresh on: - 15 shops

Observation:-

1) Placement of minto-fresh is more compare to candyman on this route.

2) Minto-fresh candy is also not sale more on this route but its placement is more compare to Chlormint.

Route 5:- Staion raod Route in K.M.:- 25 K.M.


No.of shops cover: - 45 (hilly area, mostly shopkeepers are semi wholesalers)

Placement of Bingo on: - 18 shops



Placement of Minto-fresh on: - 10 shops AnalysisFor NAYAPURA , KOTANo. of shops cover: - 300Placement of Bingo on: - 120 shops


Placement of Minto- fresh on :- 50 shopsMARKET SURVEY-

Area-kota

1.Sakatpura

Total shop -45

2.Kunadi

Total shop- 39

3. Rampura

Total shop- 35

4. Gumanpura

Total shop 30

5. bajrang nagar

Total shop- 37

6. station road

Total shop- 45

7-Patan pole

Total shop- 30

8. ladpura

Total shop 35

9. chawni

Total shop- 40Reason behind the Success of 20-20 of Parle and Sun feast Cookies. Parles 20-20 does not properly depict the origin brand in comparison to the cookies which represent sun feast in much better way. And Taste of Sun feasts Cookies is much better than Parle 20-20.

Parleys brand name and value in much more helpful in the sell of 20-20 than Sun feasts Cookies.

Parle Company has leadership in FMCG in market, which gives it an edge over other competing companies performing in the same area.( following graph justifies the above contention )

According to the survey conducted by me, Parle in much more familiar brand with the local consumer in comparison to Sunfeast .

Parle has large share of consumer form Economic Class, and in country like India, this economic class is the key factor to navigate any product in either directions of sale.

According to my survey the Name of 20-20 is on the tongue of every Indian and this gives an easy connection between the product and the game.

The Parle has a good delivery mechanism in to order to make its product for availability even in remote part of existing Market

QUESTIONNAIRE

1. Which product have good taste in biscuit

a- Parle 20-20

b- ITC cookies

Objective :- To know the taste preference of different samples .

2. What is more important for the sale of a product?A- Brand name

B- Product name

Objective:- To know about the reasons of effective sales.

3. Which brand has outstanding sales in biscuit market?

A-Parle

B-ITC

C-OTHER

Objective: - To know about better sales of biscuit company

4. Which brand is familiar for consumer?

A-PARLE

B-ITCObjective: - To know about the consumer awareness of the brand

5. Which type of category consumes 20-20 Parle the most? A-low class

B-economic class

C-high class

Objective: - To know about the which category is consume 20-20 Parle .

6.20-20 cricket logos is helpful l in sales of Parle 20-20 biscuit

A-YES

B- NO

Objective: - To know about the consumer mantality

7. Which brand has best market delivery / availability in market?

A-ITC

B-PARLE

Objective: To know about the market approach of the product.

Recommendations

It is ITC's strategic intent to secure long-term growth by synergising and blending the diverse pool of competencies residing in its various businesses to exploit emerging opportunities in the FMCG sector.

The Companys institutional strengths deep understanding of the Indian consumer, strong trademarks, deep and wide distribution network, agri-sourcing skills, packaging know-how and cuisine expertise continue to be effectively leveraged to rapidly grow the new FMCG businesses.

Over the last few years, ITC has rapidly scaled up presence in its newer FMCG businesses comprising Branded Packaged Foods, Lifestyle Retailing, Education and Stationery products, Personal Care products, Safety Matches and Incense Sticks (Agarbatti) with Segment Revenues growing at an impressive compound annual growth rate of 38% during the last 5 years.

The Companys unwavering focus on quality, innovation and differentiation backed by deep consumer insights, world-class R&D and an efficient and responsive supply chain will further strengthen its leadership position in the Indian FMCG industry. Company must focus on rural areasso that theycan increase their sales.

Products have to be essentially available in market at all given points of time. ITC must also be aware of new entrants like GSK,PepsiCo,UK,Shakti Bhoj in FMCG segment. Margins for retailers must be increased.

My other observations:-

1). In order to increase sale in biscuit Market the company should focus on rural area, and ITC will give tough competition in next 2 years.

2. The ITC has failed to convince the economic class of people that it has FMCG industry apart from Tobacco and HotelsBibliographyWebsite:-

www.itcportal.com/- Pvt. (I) Ltd

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A Project Report on Itc

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