A STUDY OF THE CONSUMER BUYING BEHAVIOUR OF ITC’S CLASSMATE

NOTEBOOKS

PROJECT REPORT
Submitted in partial fulfillment of the Requirements for the award of the Degree of Master
Of Business Administration of Sambalpur University

By
ASHISH KUMAR NANDA
Register No: 121I57

Under the Guidance of

Dr. TUSHAR KANTI DAS

DEPARTMENT OF BUSINESS ADMINISTRATION, SAMBALPUR UNIVERSITY

JYOTI VIHAR, BURLA, PIN-768019
 DEPARTMENT OF BUSINESS ADMINISTRATION
Sambalpur University, Jyoti Vihar P.O. - Burla, Odisha
PIN- 768019

Certificate

This is to certify that the project report titled “A STUDY OF THE CONSUMER BUYING
BEHAVIOUR OF ITC’S CLASSMATE NOTEBOOKS” is a bonfire record of the work done by
Mr. ASHISH KUMAR NANDA under the guidance of Dr. Tushar Kanti Das and submitted in partial
fulfillment of the requirements for the award of Master of Business Administration of Sambalpur
University, Jyoti Vihar, Burlala.

Prof. Dr. K. Sreeranganadhan

Dean and Director

Place: Jyoti Vihar, Burla

Date: 15-03-2018
 DEPARTMENT OF BUSINESS ADMINISTRATION
Sambalpur University, Jyoti Vihar P.O. - Burla, Odisha
PIN- 768019

Certificate

This is to certify that this project report titled “A STUDY OF THE

CONSUMER BUYING BEHAVIOUR OF ITC’S CLASSMATE NOTEBOOK” is
based on an authentic work done by Mr. Ashish Kumar Nanda under my guidance and
submitted in partial fulfillment of the requirements for the award of the Degree of Master of
Business Administration of Sambalpur Univrsity, Jyoti Vihar, Burla.

Place: Jyoti Vihar Dr. Tushar Kanti Das

Date: 15-03-2018 Head
Department of Business
Administration,
Sambalpur University
 DECLARATION

I, ASHISH KUMAR NANDA do hereby declare that the report titled “A STUDY OF THE
CONSUMER BUYING BEHAVIOUR OF ITC’S CLASSMATE NOTEBOOK” is based
on the original work done by me and submitted to the Sambalpur University in partial
fulfillment of the requirements for the award of Degree of Master of Business
Administration. I further declare that this work is not submitted by me for the award of any
Degree, Diploma or Title earlier.

Place: Jyoti Vihar Ashish Kumar Nanda

Date: 15-03-2018
 ACKNOWLEDGEMENT

I wish to express my deep sense of gratitude to everyone who helped us through scholarly
guidance and valuable motivation for completing the paper. First of all we thank the almighty
God for making this task a success. I have made an earnest attempt to make this report complete
and worthwhile.

This paper would not have come to its present shape without the able guidance, supervision and
help of a number of people. We would, at the very onset, like to thank Dr. Tushar Kanti Das,
Head, Department of Business Administration, Sambalpur University for providing us the
facility to carry out the project successfully and for his valuable suggestions and patronage of
this report.

I would like to, give special thanks and gratitude to Dr. Rohit Kumar Mishra, Assistant
Professor, Department of Business Administration, Sambalpur University for mentoring and
providing the necessary information as and when required throughout this process. His guidance
has provided many insights and suggestions that we feel have increased the quality of
information presented here.

I would also like to thank all others the seniors of our Department for their co-operation and
guidance.

Ashish Kumar Nanda

 CONTENTS

CHAPTER PARTICULARS PAGE

NO
CHAPTER 1 INTRODUCTION 1
1.1 Background 2
1.2 Scope Of The Study 3
1.3 Statement Of The Problem 3
1.4 Objective 3
1.5 Limitations Of The Study 4
CHAPTER 2 INDUSTRY & COMPANY PROFILE 5
2.1 Industry Profile 6
2.1.1 Profile of Notebook Industry In India 6

2.1.2 Global Writing Instrument Industry 8

2.1.3 Market and Market Information 8

2.1.4 Regulatory Requirements 9

2.1.5 Changing Consumer Behavior 9

2.2 Company Profile 11

2.2.1 Introduction to the Company 11
2.2.2 History of ITC 11
2.2.3 ITC‟s Product Mix 15

2.2.4 Vision of the Company 25

2.2.5 Mission of the Company 25

2.2.6 ITC’s Core Values 25

2.2.7 Certifications of ITC 27

CHAPTER 3 REVIEW OF LITERATURE 30
3.1 Consumer Buying Behavior 31
3.2 Stages of the Consumer Buying Process 31

3.3 Types of Consumer Buying Behaviors 32

3.4 Categories that Affect Consumer Buying Decision 33

Process

CHAPTER 4 RESEARCH METHODOLOGY 37

4.1 Research Methodology 38

4.2 Research Design 38

4.3 Statistical Tools Used 39

 CHAPTER 5 DATA ANALYSIS AND 40
INTERPRETATION
5.1 Consumer Buying Behavior Questionnaire Analysis 42
5.2 Retailer‟s Questionnaire Analysis 59
CHAPTER 6 FINDINGS &SUGGESTIONS 75

6.1 Findings 76

6.2 Suggestions 77

CHAPTER 7 CONCLUSION 79

BIBILOGRAPHY 80
APPENDIX 81

EXECUTIVE SUMMARY
Stationary Industry which is basically my concerns industry around which my project has to
be revolved is really a very complex industry. The project titled “Co”
was basically a research based project. The main motive behind doing this project is to

 Know the industry

 Have an overview of how ITC Classmate could penetrate the various Institutions

 Know the working of distribution and TSIs (Territory Sales In Change) in ITC
Classmate.

My project was totally based on primary data. The project started with a visit to various
institutions in order to gain information about the stationary they use. This was done
thoroughly in order to understand about scope of ITC Classmate to generate leads in those
Institutions, before this I was given through overview of different products of ITC Classmate.

My next step was to visit Stationary retail stores and gather information about stocks
and problems faced by stores. My basic objective was to find out if the supply chain cold be
made better. In this survey I had to visit Stationary Shops with the ITC Classmate.

My findings through this project were that there is a huge market and there is can be
scope of improvement. Instructions have the capacity to give good business to the ITC
Classmate and more sales could be achieved if the services given by the TSIs are improved.
CHAPTER 1 - INTRODUCTION
 INTRODUCTION

1.1 BACKGROUND

The ultimate objective of all production is consumption for the satisfaction of varied needs of
man. A free market economy provides freedom to the consumers to buy and consume goods
of their choice. Buying preferences of the consumers send signals to the producers to produce
various commodities in required quantities. Producers, therefore, produces only those
commodities which are desired by the consumers. Consumer behaviour is related to likes and
dislikes and expectations of the consumers. Consumer behaviour has changed in recent years
owing to enhanced awareness, information technology and more importantly governmental
intervention through legislations. Thus, the manufacturers are more cautious in dealing with
consumers of their respective products.
In recent years, the lifestyle of a large number of consumers in India has changed dramatically
and the process of change is on. The buying behaviour of the consumers is influenced by
several factors such as socio-economic conditions, cultural environment, literacy level,
occupation, geographical location, efforts on the part of sellers, exposure to media etc.
Consumer behaviour in the market is perplexing because of a singular lack of consistency in
groups which are homogeneous in parameters of demographics-Age, occupation, education
and income.
The study of consumer behaviour implies how & why a particular consumer reacts to the
decisions of producers. It is the study of how individual make decision to spend their available
resources (time, money, effort) on consumption related items. It includes the study of why they
buy it, when they buy it, where they buy it, how often they buy it & how often they use it.
This study focused on understanding the consumer buying behaviour of notebooks at retail
outlets. It also focused on the issue that whether the marketing strategies are properly
implemented or not. The study would be beneficial for the ITC Company to formulate the
strategy for future.
DEFINITION

Consumer Buying Behaviour:

The collective actions, including the searching, evaluation, selection, purchasing, consuming,
disposing of products, taken by consumers in determining which goods and services hold the
most value for meeting their wants and needs. Marketers study consumer buying behaviour to
determine the influence of psychological, sociological, demographical, and cultural factors
have on buying decisions.

1.2 OBJECTIVES OF THE STUDY

To know about the notebook industry.

To study purchase pattern of notebook by the consumers.

To know which factors mostly influences the consumer to buy notebooks.

To know which price range of notebooks are mostly preferred by the people.

To study the impact advertisement on consumers.

To know the effectiveness of In-shop advertisement retail outlet.

To help the company marketing managers to design an effective marketing mix for its
target customers.

1.3 SCOPE OF THE STUDY

1. This study helps to the candidates to know about the consumer buying behaviour and
its influencing factors

2. This study will help the company to know about the consumer buying behaviour
pattern of their products

3. This study will help the company to identify the right marketing mix for the products

4. This study helps the company to improve their strategic formulation and decision
making process
1.4 STATEMENT OF THE PROBLEM
To study the consumer buying behaviour and retailers perceptive of classmate pen with its
competitors.

1.5 LIMITATIONS OF THE STUDY:

A research study is never perfect. There is always some scope of improvement in the study in
the future. Thus, it becomes important to critically evaluate the results and the whole study.
The present study has certain limitations that need to be taken into account when considering
the study and its contributions:

1. There a number of a factor, which affects consumer’s perception about notebooks and
is not possible to take all of them into account. Thus, this study is limited to variable
under consideration.

2. The research is based on the responses given by the respondents, which may or may
not be biased.

3. The results shown are relative in nature and are not absolute. In other words, it is the
perception of an average customer.

4. The research study was conducted within the limited duration of time. So a detailed
and comprehensive study could not be made.
.
CHAPTER 2 - INDUSTRY &

COMPANY PROFILE
2.1 INDUSTRY PROFILE

2.1.1 PROFILE OF NOTEBOOK INDUSTRY IN INDIA

India Exercise Notebook Market Forecasts to 2020 – Influx of Organized Notebook Brands
and Rising Spending on Education to Fuel Growth” which provides a comprehensive analysis
of the exercise notebook market in India. The report covers various aspects such as overall size
of India exercise notebook market, segmentation on the basis of Use, Number of Pages, GSM,
Recycled/Non-Recycled Papers, Retail/Institutional Sales, Size, Bindings, Cover Types, City
Tiers, Rural/Urban Demand and Paper Types. The report also covers the investment model,
pricing analysis and trade scenario in the industry. Additionally, the report offers prevalent
trends, developments, challenges in the industry besides presenting a PORTERs analysis of the
current market. The report also covers the competitive landscape of the industry, market share
of major players, and comprehensive profile of leading players operating in the market. Major
macroeconomic indicators affecting the market have also been highlighted in the report. The
report is useful for existing exercise notebook manufacturers, dealers, distributors, online and
offline retailers, book shops, emerging players who wish to capitalize the market potential and
investors who are looking forward to venture into the exercise notebook market in India.

Market Genesis
The market for exercise notebooks in India has been traditionally dominated by the
unorganized segment. From the endpoint of marginal retailers to independent sellers, all have
been dependent on imports from China. However, the market has developed to achieve a
substantial valuation which was not there until 2000. The evolvement of organized brands such
as ITC Classmate, Navneet and others have added premium to the market, discerned by the
fact that the prices of exercise notebooks have grown 5-6 folds and even more than that in some
cases in the last decade. The exercise notebook market in India has been expanding at a decent
pace in the wake of growing economy, high literacy levels, burgeoning middle-class and
enhanced scale of initiatives in the education sector. There has been a marked shift in the
preference from cheap local brands to quality products. Aesthetically and functionally
improved notebooks, which come with innovative 3D covers, had witnessed increasing
demand in the recent years. The market size in terms of consumer expenditure on exercise
notebook was evaluated at INR ~ billion during FY’2015 with the organized segment
contributing for ~% of the market revenue. Volume-wise the market sold ~ billion units of
exercise notebooks in FY’2015 at an aggregate average price of INR ~.
Trade Scenario
The import market for exercise notebook in India has grown at a decent rate over the period
FY’2010-2015. In fact, there was a steep rise of ~% during the period FY’2015 which saw the
import value reach INR ~ million. China and USA have been the major importing locations.
The export market for exercise notebooks in India was pegged at INR ~ billion in FY’2015
showcasing an exemplary CAGR of ~% over the period FY’2010-2015. Besides, a healthy
domestic market, the export demand has been quite promising which has resulted in a large
number of local and national players aligning their businesses to suit the foreign demand.

MAJOR SEGMENTS
By type of usage, notebooks (including long books) accounted for the highest revenue and
volume sales amongst all the product types envisaging ~% of the market sales volume in
FY’2015. While ~% of the sales came from the 54-56 gsm categories, 65 gsm variants
accounted for ~% of the sales. Practical notebooks and drawing books were the next highest
selling items envisaging volume share of ~% and ~% respectively in FY’2015.

Graph book and scrap book sales are heavily constrained by their usability in stipulated subjects
and therefore have limited scope of expansion in the overall exercise notebook market. A5
accounted for ~% of the overall notebooks sold amounting to ~ million units while A4 had
countered a share of ~% in FY’2015. 41-100 page notebooks accounted for ~% of the overall
sales volume in the notebook and long book category during FY’2015. 60 page notebooks are
one of the most popular items being consumed in the Indian market under this category. 101-
150 page notebooks envisaged a share of ~% in FY’2015. Prices for this category fall in the
range of INR ~. As far as practical notebooks are concerned, 80-100 page notebooks accounted
for ~% of the sales whereas ~% of the sales for the drawing books came from 20-50 page
categories.

Graph book sales also followed similar trend with ~% of the sales volume being contributed
from the 20-50 pages category. The usage of recycled paper is more prevalent in India currently
accounting for around ~% of the overall paper required in manufacturing exercise notebooks.
The primary reason behind this has been low cost of production and heightened governmental
push towards integrating pro-environment manufacturing processes.

High usage of writing exercise notebooks as compared to drawing notebooks indirectly leads
to greater demand of white paper exercise notebooks which accounted for ~% of the overall
volume sales in the market in FY’2015. Revenue generated through exercise notebook sales in
tier-III cities amounted to INR ~ billion while tier-II cities contributed for INR ~ billion in
FY’2015.

COMPITITION
As far as the competitive landscape is concerned, ITC, with its collaborative links with SMEs
coupled with a strong product portfolio is currently the unanimous leader in the market. It has
been successful in creating a strong brand with its “Classmate” range of exercise notebooks
which was one of the first notebooks to feature a premium design, had superior quality papers
and was reasonably priced. ITC had a ~% market share in FY’2015 followed by Navneet that
churned out a ~% share in the organized manufacturer’s revenues from exercise notebooks in
India. Navneet is one of the oldest stationery brands and has got a widely popular publishing
business. Brijlaxmi Paper had the third highest share of ~% owing to its phenomenal growth
in FY’2015 because of its heavily expanding retail network including modern trade channels.

India’s middle class population is likely to go up to 583 million by FY’2025 resulting in wider
demand. The market is expected to witness a rise in the volume of premium office as well as
school and college notebooks as companies widen the offering of their premium brands to
realize the high margin in this segment. Pro-environmental initiatives by the Government will
propel the usage of more recycled papers in exercise notebook production. The market is also
tempting for foreign brands that will look forward to grab a share of the unorganized pie. It is
projected that the market will reach volume sales of ~ billion envisage revenues worth INR ~
billion by FY’2020. The average exercise notebook price would reach IN ~ by the same period.
2.1.2 GLOBAL WRITING INSTRUMENT INDUSTRY

Globally, writing instrument industry is rising at a healthy rate despite growing

computerization. The global writing instrument industry is estimated at Rs 65000 crores. (p.a)
where USA markets grew by 5% last year (2005-06) and is expected to grow by the same
proportionate at this time too. China controls approximately 10% of the global market, due to
its manufacturing process. India is becoming most preferred manufacturing destination after
china. Indian product quality is among best in the world, Compared to china mass market
products. Indian market is growing healthily at 15 to 20% and is expected to grow with same
rate for upcoming 2 to3 years (acc CAGR), where the organize sector now controls 70% market
share in 2011 as compared to 54% up to 2000.

2.1.3 REGULATORY REQUIREMENTS

In India as per law, the manufacturing of writing instruments is reserved or falls under the
category of SSI (Small Scale Industry Sector). Thus there is ceiling on investment in plant and
machinery manufacturing process (Max Rs. 50 Crores), excluding mould making as it is highly
capital intensive pert of manufacturing. Of course any EOU (Export Oriented Unit) does not
fall under this purview of SSI.

2.1.4 CHANGING CONSUMER BEHAVIOUR

The purchase of a single notebook used to be a considered decision until not too long ago.
Today, most consumers buy multiple notebooks in a single purchase. Because the consumer
would go out specifically to buy a notebook earlier, today most buy along with a number of
other things as part of their monthly provisions. Earlier there was one notebook to write, now
interestingly even as communication getting to increase psychological, there is different
notebook, cover, different size, needs and situation.
Gone are the days where notebooks were just considered as merely an item of writing. But now
it is a quasi-fashion statement something that’s aligns with your personality, of course still the
notebook purchase decision is considered as low involvement decision.
2.2 COMPANY PROFILE

2.2.1 INTRODUCTION TO THE COMPANY

ITC is one of India's foremost private sector companies with a market

capitalisation of nearly US $ 30 billion and a turnover of over US $
6.1 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.

2.2.2 HISTORY OF ITC

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of
India Limited'. A leased office on Radha Bazar 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. 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.

ITC's Packaging & Printing Business was 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 its Hotels business with the acquisition of a hotel in Chennai
which was rechristened 'ITC-Welcomgroup Hotel Chola'. Since then ITC's Hotels business has
grown to occupy a position of leadership, with over 70 owned and managed properties spread
across India.
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited, which today has become the market leader in India.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In
August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed
to Surya 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. Tribeni Tissues Division was merged
with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers
Division in November 2002.

In 1990, leveraging its agri-sourcing competency ITC set up the Agri Business Division for
export of agri-commodities. ITC's unique and now widely acknowledged e-Choupal initiative
began in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 9 states covering over
4 million farmers. ITC's first rural mall, christened 'Choupal Sagaar' 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 launched a line of high quality greeting cards under the brand name 'Expressions'.
In 2002, the product range was enlarged with the introduction of Gift wrappers, Autograph
books and Slam books. In the same year, ITC also launched 'Expressions Matrubhasha', a
vernacular range of greeting cards in eight languages and 'Expressions Paperkraft', a range of
premium stationery products. In 2003, the company rolled out 'Classmate', a range of
notebooks in the school stationery segment.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores
later expanded its range to include Wills Classic formal wear (2002) and Wills 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. In
2007, the Company introduced 'Miss Players'- a fashion brand in the popular segment for the
young woman.
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.
ITC's foray into the Foods business is an outstanding example of successfully blending
multiple internal competencies to create a new driver of business growth. It began in August
2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes.

In 2002, ITC entered the confectionery and staples segments with the launch of the brands
mint-o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the
introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast
growing branded snacks category with Bingo! in 2007.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in the Safety Matches initiative. ITC now markets popular
safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

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

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care
products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills
provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and
women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian
consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower
Gels and Soaps in September, October and December 2007 respectively. The Company also
launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select
markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel
range of shampoos in June 2008.

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 Agri-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 Limited, is
aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including
e-enabled services and business process outsourcing.

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 26,000 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 3,75,000 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."
2.2.3 ITC’s Product Mix

Cigarettes
ITC is the market leader in cigarettes in India. With its wide range of invaluable brands,
it has a leadership position in every segment of the market. It's highly popular
portfolio of brands includes Insignia, India Kings, Classic, Gold Flake, Silk Cut,
Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.
The Company has been able to build on its leadership position because of its single
minded focus on value creation for the consumer through significant investments in
product design, innovation, manufacturing technology, quality, marketing and
distribution.
All initiatives are therefore worked upon with the intent to fortify market standing in
the long term. This in turns aids in designing products which are contemporary and
relevant to the changing attitudes and evolving socio economic profile of the country.
This strategic focus on the consumer has paid ITC handsome dividends.
ITC's pursuit of international competitiveness is reflected in its initiatives in the
overseas markets. In the extremely competitive US market, ITC offers high-quality,
value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a
key player in the GCC markets through growing volumes of its brands.
ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger,
Saharanpur and Kolkata. These factories are known for their high levels of quality,
contemporary technology and work environment.

FMCG Foods
ITC made its entry into the branded & packaged Foods business in August 2001 with
the launch of the Kitchens of India brand. A more broad-based entry has been made
since June 2002 with brand launches in the Confectionery, Staples and Snack Foods
segments.
The packaged foods business is an ideal avenue to leverage ITC's proven strengths in
the areas of hospitality and branded cuisine, contemporary packaging and sourcing of
Agricultural commodities. ITC's world famous restaurants like the Bukhara and the
Dum Pukht, nurtured by the Company's Hotels business, demonstrate that ITC has a
deep understanding of the Indian palate and the expertise required to translate this
knowledge into delightful dining experiences for the consumer. ITC has stood for
quality products for over 98 years to the Indian consumer and several of its brands are
today internationally benchmarked for quality.
The Foods business carries forward this proud tradition to deliver quality food products
to the consumer. All products of ITC's Foods business available in the market today
have been crafted based on consumer insights developed through extensive market
research. Apart from the current portfolio of products, several new and innovative
products are under development in ITC's state-of-the-art Product Development facility
located at Bengaluru.
Leadership in the Foods business requires a keen understanding of the supply chain for
agricultural produce. ITC has over the last 98 years established a very close business
relationship with the farming community in India and is currently in the process of
enhancing the Indian farmer's ability to link to global markets, through the e-Choupal
initiative, and produce the quality demanded by its customers. This long-standing
relationship is being leveraged in sourcing best quality agricultural produce for ITC's
Foods business.
The Foods business is today represented in 4 categories in the market. These are:
Ready To Eat Foods
Staples
Confectionery
Snack Foods
In order to assure consumers of the highest standards of food safety and hygiene, ITC
is engaged in assisting outsourced manufacturers in implementing world-class hygiene
standards through HACCP certification. The unwavering commitment to
internationally benchmarked quality standards enabled ITC to rapidly gain market
standing in all its 6 brands:
Kitchens of India
Aashirvaad
Sunfeast
mint-o

Candyman
Bingo!
Lifestyle Retailing
ITC‟s Lifestyle Retailing Business Division has established a nationwide retailing
presence through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle,
the fashion destination, offers a tempting choice of Wills Classic work wear, Wills
Sport relaxed wear, Wills Clublife evening wear, fashion accessories and Essenza Di
Wills – an exclusive range of fine fragrances and bath & body care products and Fiama
Di Wills - a range of premium shampoos and shower gels. Wills Lifestyle has also
introduced Wills Signature designer wear, designed by the leading designers of the
country.
With a distinctive presence across segments at the premium end, ITC has also
established John Players as a brand that offers a complete fashion wardrobe to the male
youth of today. The recent launch of Miss Players with its range of trendy fashion wear
for young women has been a successful addition to the youthful offering. With its
brands, ITC is committed to build a dominant presence in the apparel market through a
robust portfolio of offerings.
At Wills Lifestyle, customers can browse at leisure, and shop in a relaxed and pleasing
atmosphere. The use of space is refreshing, which is reflected even in the spacious
changing rooms. Every store offers an international retailing ambience with the
extensive use of glass, steel and granite, reflecting the most contemporary trends in
store design, thereby creating a splendid backdrop for the premium offerings.
Wills Lifestyle was named Superbrand 2009 by the Superbrands Council of
India recently. Wills Lifestyle has been twice declared 'The Most Admired
Exclusive Brand Retail Chain of the Year' at the Images Fashion Awards in 2001
& 2003 as well as 'Most Admired Fashion Brand of the year - Fashion Forward' in
2009.

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
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.

Education & Stationary products

ITC made its entry into the stationery business in the year 2002 with its premium range
of notebooks, followed in the year 2003 with the more popular range to augment its
offering.
Today, ITC continues to blend its core capabilities to market a growing range of
education and stationery products. These capabilities include,
a. Manufacturer of India‟s first Ozone treated environment friendly Elemental

b. Knowledge of image processing, printing & conversion garnered from its

Packaging& Printin Business.
c. Brand Building & Trade Marketing & Distribution strengths resident in its
FMCG Business.
ITC‟s stationery Brands are marketed as “Classmate” and “Paperkraft”, with
Classmate addressing the needs of students and Paperkraft targeted towards college
students and executives.
Classmate - India’s truly largest National brand, reaching 65,000 outlets across the
country, has over 300 variants in its range which comprises notebooks, long books,
practical books, drawing books, scrap books, reminder pads etc.
The Classmate Fun N Learn range of children books targeting pre school learners,
comprising categories like Pre School Learner, Active Minds and Read Aloud Tales
with features like Wipe n Use again, Trace & Color and Puzzles ensure that a child's
first lessons are truly enjoyable.
Classmate Invento Geometry Boxes, launched for school students comprise a world-
class precision compass and high quality plastic instruments coupled with interesting
trivia and useful information, to make geometry more fascinating for students.
Aesthetically designed, Classmate pens offer the consumer a smoother and more
comfortable writing experience through use of ergonomic design, reducing the effort
required for writing. The initial launch comprises ball pens - Classmate Safari and
Classmate Ilet - and gel pens - Classmate Glider and Classmate Octane.
A new entry to the Classmate portfolio is its range of HB Jet Black pencils. Designed
attractively for school kids, the pencils offer a unique advantage of lesser lead wear out
and thus, “Stay Sharper for Longer”.
The Classmate Notebook range builds in regional preferences and caters to the
requirements of All India & State Education Boards. Every Classmate notebook carries
ITC's Corporate Social Responsibility message on its back. For every four Classmate
Notebooks, ITC contributes Re. 1 to its rural development initiative that supports,
among other projects, primary education in villages.
Classmate has successfully run the “Classmate Young Author & Artist Contest” for
5 years. The contest is a national level event going across 34 cities and getting
participation from 5000 schools.
The Paperkraft range consists of premium stationery with a wide variety for
executives to choose from. The assortment consists of notepads & multi subject
notebooks in hard, soft covers & multiple binding formats including spirals, wiros etc.
The Paperkraft brand recently launched premium business paper – an environment
friendly multipurpose paper for office and home use. The paper has been crafted by
ITC‟s Bhadrachalam unit using a pioneering technology, called “Ozone Treated
Elemental Chlorine Free technology”. Paperkraft business paper is the whitest and
 brightest 75 & 70 GSM papers manufactured in India and provides consumers an
opportunity to “Go Green”.

Safety Matches
As part of its strategic initiative to create multiple drivers of growth in the FMCG
sector, ITC commenced marketing safety matches sourced from the small-scale sector.
The Matches business leverages the core strengths of ITC in marketing and distribution,
brand building, supply chain management and paperboard & packaging to offer Indian
consumers high quality safety matches.
ITC‟s range of Safety matches include popular brands like i Kno, Mangaldeep, Aim,
Aim Mega and Aim Metro. With differentiated product features and innovative value
additions, these brands effectively address the needs of different consumer segments.
The Aim brand is the largest selling brand of Safety Matches in India. ITC also exports
regular and premium safety matches brands to markets such as Middle East, Africa and
the USA. The successful acquisition of Wimco Ltd. by Russell Credit Ltd., a wholly
owned subsidiary of ITC has consolidated the market standing of the Company's
Matches business through synergy benefits derived through combined portfolio of
offerings, improved servicing of proximal markets and freight optimization. Through
its participation, ITC aims to enhance the competitiveness of the small and medium
scale sectors through its complementary R&D based product development and
marketing strengths, especially the breadth and depth of the Company's trade marketing
and distribution.

Agarbattis

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, Tarangini, Anushri, Ananth and Mogra.
Mangaldeep Yantra is a special offering from ITC and this specially created fragrance
evokes the ambience of a temple. The premium range from ITC, Mangaldeep Spriha
has two offerings, Pratiti and Sarvatra and are specially hand rolled by Cottage
Industries, Sri Aurobindo Ashram, Puducherry. Cottage Industries, Puducherry, has
recently been accredited with IFAT certification, which is an internationally recognized
benchmark for fair trade practices.
Mangaldeep is also available in 3-in-1 and 5-in-1 packs giving the consumer a choice
of multiple fragrances in a single pack. Mangaldeep appeals to a cross-section of
consumers with offerings at various price points. These agarbattis are available in
innovative 'Fragrance-Locked' packaging. 'Fragrance locking' is a unique concept of
packaging which retains the fragrance for a longer period and helps in "Completing the
Purity of Prayer". Mangaldeep is fast emerging as the only national brand in an industry
dominated by multiple local brands.
In line with ITC's Triple Bottom Line philosophy of every business 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 5000 people. Seven out of 10 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 states and like Bihar, Tripura, Tamil Nadu, who are setting up
agarbatti units, training village women in rolling agarbattis and employing them in
these units.

Expressions Aromatic Candles

o Leveraging its deep consumer insight, ITC's Agarbatti business recently
launched "Expressions" Premium Range of Aromatic Candles in India
through Wills Lifestyle Stores. Research on usage and attitude reveals a strong
linkage of candles to attributes like Romance, Decoration and Wellness
(Aromatherapy).
 o The Expressions range of Aromatic candles comprises Amour - the Romance
Series, Adora - the Decor Series and Nirvana - the Spa Series. The basis of
segmentation is colour and fragrance - Red for romance, Purple for décor and
Green for wellness. The fragrance of the candles have been specially selected
are made from the finest perfumes and oils. Each candle's fragrance, shape and
design are carefully chosen with a distinct sensation and ambience in mind. Ideal
for gifting, Expressions Aromatic Candles promise to soothe, uplift and
transform.

Hotels
ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai,
which was then rechristened ITC Chola. Since then the ITC-Welcomgroup brand has
become synonymous with Indian hospitality. With over 100 hotels in more than 80
destinations, ITC-Welcomgroup has set new standards of excellence in the hotel
industry in Accommodation, Cuisine, Environment and Guest Safety. ITC's Hotels
business is one of India's finest and fastest growing hospitality chains. ITC Hotels'
commitment to delivering globally benchmarked services, embedded in a culture
deeply rooted in India's rich tradition of hospitality, gives it a unique and distinct
identity.

A leader in the premium hospitality segment, ITC Hotels have had the privilege of
hosting world leaders, Heads of State and discerning guests from across the world and
within.
ITC-Welcomgroup pioneered the holistic concept of 'branded accommodation' in the
hospitality industry. It was the first to launch the idea of a 'Hotel within a Hotel' by
segmenting, customizing and branding hotel services like 'ITC One', 'Towers' and the
'Executive Club'. Each of these caters to specialized needs of the global business
traveller with unmatched quality and a range of custom-made services.
Paperboard and Specialty papers

ITC‟s Paperboards and Specialty Papers Division is India‟s largest and most
technologically advanced paper and paperboards business. ITC caters to a wide
spectrum of packaging, graphic, communication, writing, printing and specialty paper
requirements through its four world-class mills in India. Having pioneered many
speciality applications like cigarette tissues, packaging boards, aseptic cartons and
gypsum liners, ITC‟s Paperboards and Specialty papers business enjoys market
leadership in the value-added paperboards segment, and also has a significant share of
the Indian paperboards market. It is also the largest Indian exporter of coated boards.

Packaging
ITC's Packaging & Printing Business is the country's largest convertor of
paperboard into packaging. It converts over 50,000 tonnes of paper and paperboard
per annum into a variety of value-added packaging solutions for the food & beverage,
personal products, cigarette, liquor, cellular phone and IT packaging industries. It has
also entered the Flexibles and Corrugated Cartons business.
The Division, which was set up in 1925 as a strategic backward integration for ITC's
Cigarettes business, is today India's most sophisticated packaging house. State-of-the-
art technology, world-class quality and a highly skilled and dedicated team have
combined to position ITC as the first-choice supplier of high value added packaging.
The Division supplies value-added packaging to the Company's Cigarettes business. Its
client list includes several well-known national and international companies like
British American Tobacco, Philip Morris International, Surya Nepal Private
Limited, VST Industries, UB Group, Nokia, Flextronics, Foxconn, FMC India Pvt
Ltd., Pernod Ricard, Allied Domecq, Whyte & Mackay, Hindustan Lever, Tata
Tetley, Nestle and Reckitt Benkiser India Limited, etc.
With all the three factories at Tiruvottiyur near Chennai, Munger in Bihar and
Haridwar in Uttarakhand certified to ISO 9001, ISO 14001 and OHSAS 18001,
the Company offers a comprehensive product range in packaging:
Flip-top boxes Display outers Shells and Slides Soft cup and strap Labels
Bundle Wraps Flap boxes Inner Frames Coupon Inserts Folding Cartons
 Fluted Cartons Shoulder Boxes Pre-printed cork tipping Flexibles
Packaging
ITC occupies a leadership position in cigarette and liquor packaging in India. It supplies
packaging to cover 70 billion cigarettes a year domestically, and supplies packaging
for 15 billion cigarette sticks a year for the export market. It is the largest supplier of
liquor mono cartons in the country.
ITC has enhanced the value of some of the most favoured brands with superior look-
and-feel packaging, using the best raw materials and process combinations, and an in-
house pre-press Design Centre.
A Product Introduction Process team pioneers packaging innovations. The team uses a
unique process to pilot the client's packaging through its manufacturing system.
Specifications are evolved based on clients' needs. Corresponding to the specifications,
a variety of packaging solutions is then generated. The efficacy of the packaging is
tested simulating the client's factory conditions.

2.2.4 VISION OF THE COMPANY

Sustain ITC's position as one of India's most valuable corporations through world class
performance, creating growing value for the Indian economy and the Company‟s stakeholders.

2.2.5 MISSION OF THE COMPANY

To enhance the wealth generating capability of the enterprise in a globalising environment,

delivering superior and sustainable stakeholder value.

2.2.6 ITC’s CORE VALUES

ITC's Core Values are aimed at developing a customer-focused, high-performance organisation

which creates value for all its stakeholders:

Trusteeship

As professional managers, we are conscious that ITC has been given to us in "trust" by all their
stakeholders. ITC actualise stakeholder value and interest on a long-term sustainable basis.

Customer Focus

ITC is always customer focused and will deliver what the customer needs in terms of value,
quality and satisfaction.
Respect for People

ITC is result oriented, setting high performance standards as individuals and teams. ITC
simultaneously respect and value people and uphold humanness and human dignity. ITC
acknowledge every individual brings different perspectives and capabilities to the team and
that a strong team is founded on a variety of perspectives. ITC want individuals to dream, value
differences, create and experiment in pursuit of opportunities and achieve leadership through
teamwork.

Excellence

ITC do what is right, do it well and win. ITC will strive for excellence in whatever they do.

Innovation

ITC will constantly pursue newer and better processes, products, services and management
practices.

Nation Orientation

ITC is aware of their responsibility to generate economic value for the Nation. In pursuit of
their goals, ITC will make no compromise in complying with applicable laws and regulations
at all levels.

ITC’s Philosophy
ITC believes in practicing ethical behaviour among the corporate citizen. The company
follows an HR policy that is regulated by Teamwork, Trust, Collaboration, Mutuality,
Meritocracy, Objectivity, Collaboration, Self-respect and Human-dignity. It is also deeply
committed to make the company a gender friendly place for each individual while also
ensuring enhancement of equal opportunities for men and women, preventing sexual
harassment of any form and the adherence to good employment practices. It is ensured that
the interest of the company is foremost and in this context acceptance of any kind of gifts
or payments from suppliers or customers is viewed as a serious breach of company
discipline. And such acts are also considered as damaging to the reputation of the company.
High standards of house keeping and hygiene are followed to ensure excellent physical
working conditions. It is understood that all the directors, senior management and
employees shall conduct themselves in an honest manner and avoid any conflict of interest.
The top officials and employees of ITC believe that ITC provides them freedom at work and
resources to experiment. Employees take pride in working for ITC for its work culture,
environment, and the way people are treated. They are consulted before a new
project\system is introduced and their concerns and suggestions addressed. ITC also gives a
lot of input to develop their skill and career. They give utmost importance to equal
opportunities, better work environment.

2.2.7 CERTIFICATION OF ITC

ITC constantly endeavors to benchmark its products, services and processes to global
standards. The Company's pursuit of excellence has earned it national and international honors.
ITC is one of the eight Indian companies to figure in Forbes A-List for 2004, featuring 400 of
"the world's best big companies". Forbes has also named ITC among Asia's'Fab 50' and the
World's Most Reputable Companies
ITC is the first Indian company and the second in the world to win the prestigious
Development Gateway Award. It won the $100,000 Award for the year 2005 for its
trailblazing ITC e-Choupal initiative which has achieved the scale of a movement in rural
India. The Development Gateway Award recognizes ITC's e-Choupal as the most exemplary
contribution in the field of Information and Communication Technologies (ICT) for
development during the last 10 years. ITC e-Choupal won the Award for the importance of
its contribution to development priorities like poverty reduction, its scale and replicability,
sustainability and transparency.

ITC has won the inaugural 'World Business Award', the worldwide business award
recognizing companies who have made significant efforts to create sustainable livelihood
opportunities and enduring wealth in developing countries. The award has been instituted
jointly by the United Nations Development Programme (UNDP), International Chamber of
Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum (IBLF).

ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate Triple
Impact Award in 2007 for its invaluable contribution to the triple bottom line benchmarks of
building economic, social and natural capital for the nation.
 ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in
2007, the Award for „CSR in Emerging Economies 2005‟ and „Excellence in Corporate
Governance' in the same year. These Awards have been instituted by the Institute of Directors,
New Delhi, in association with the World Council for Corporate Governance and Centre for
Corporate Governance

ITC's cigarette factory in Kolkata is the first such unit in India to get ISO 9000 quality
certification and the first among cigarette factories in the world to be awarded the ISO 14001
certification

ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO 14001
Environment Management Systems certification.

ITC Filtrona is the first cigarette filter company in the world to obtain ISO 14001

ITC Infotech finds pride of place among a select group of SEI CMM Level 5 companies in
the world.

ITC's Green Leaf Threshing plant in Chirala is the first in India and among the first 10 units
in the world to bag the Social Accountability (SA 8000) certification

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 organisation that supports overseas businesses in that
country.
2006 Inducted into the `Hall of Pride' by the 93rd Indian Science Congress
2005 Honoured 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 Meridien Hotelier of the Year

ITC has won the 'Enterprise Business Transformation Award' for Asia Pacific (Apac),
instituted by Infosys Technologies and Wharton School of the University of Pennsylvania for
its celebrated e-Choupal initiative.

ITC is the only Indian FMCG Company to have featured in the Forbes 2000 list. The Forbes
2000 is a comprehensive ranking of the world's biggest companies, measured by a composite
of sales, profits, assets and market value. The list spans 51 countries and 27 industries.

ITC continues its dominance of The Economic Times' Brand Equity listing of India's 100
Biggest FMCG Brands, with three brands from its stable making it to the top five. Gold Flake
remains India's biggest FMCG brand in terms of sales. Navy Cut ranks at No. 4. ITC's Scissors
brand ranks at No 5 and is the only new entrant into the top 10.

Restaurant magazine has chosen Bukhara at the ITC Maurya, New Delhi as the best Indian
restaurant in the world and the best restaurant in Asia. Bukhara has also been adjudged one of
the top 50 restaurants in the world by the London based magazine 'The Good Food Guide'.
Bukhara is the only South Asian restaurant to figure in the list.

ITC's Lifestyle Retailing Business Division (LRBD) has won the "Best Supply Chain
Practices Award" for time-effective and cost-efficient Logistics Management in Organized
Retail. The awards were organized by Retailers Association of India (RAI) in association with
ITW Signode - the International leaders in packaging solutions.
 CHAPTER -3

REVIEW OF LITERATURE
3.1Consumer Buying Behaviour

Definition of Buying Behaviour:

Buying Behaviour is the decision processes and acts of people involved in buying and using
products.
Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer. A
firm needs to analyze buying behaviour for:

Buyer‟s reactions to a firms marketing strategy has a great impact on the

firm‟s success.
The marketing concept stresses that a firm should create a Marketing Mix (MM) that
satisfies (gives utility to) customers, therefore need to analyze the what, where, when
and how consumers buy.
Marketers can better predict how consumers will respond to marketing strategies.

3.2 Stages of the Consumer Buying Process

Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a purchase.
All consumer decisions do not always include all 6 stages, determined by the degree of
complexity

The 6 stages are:

1. Problem Recognition(awareness of need)--difference between the desired state

and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger
stimulates your need to eat..
2. Information search--
o Internal search, memory.
o External search if you need more information. Friends and relatives
(word of mouth). Marketer dominated sources; comparison shopping;
public sources etc.
 A successful information search leaves a buyer with possible alternatives, the
evoked set.

3. Evaluation of Alternatives--need to establish criteria for evaluation, features

the buyer wants or does not want. Rank/weight alternatives or resume search..
Information from different sources may be treated differently. Marketers try to
influence by "framing" alternatives.
4. Purchase decision--Choose buying alternative, includes product, package, store,
method of purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5,
product availability.
6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive
Dissonance, have you made the right decision. This can be reduced by
warranties, after sales communication etc.

3.3 Types of Consumer Buying Behaviours

Types of consumer buying behaviour are determined by:

Level of Involvement in purchase decision. Importance and intensity of interest in

a product in a particular situation.
Buyers level of involvement determines why he/she is motivated to seek information
about a certain products and brands but virtually ignores others.

High involvement purchases--Honda Motorbike, high priced goods, products visible to

others, and the higher the risk the higher the involvement. Types of risk:

Personal risk
Social risk
Economic risk

The four type of consumer buying behaviour are:

 Routine Response/Programmed Behaviour--buying low involvement frequently
purchased low cost items; need very little search and decision effort; purchased
almost automatically. Examples include soft drinks, snack foods, milk etc.
Limited Decision Making--buying product occasionally. When you need to obtain
information about unfamiliar brand in a familiar product category, perhaps.
Requires a moderate amount of time for information gathering. Examples include
Clothes-- know product class but not the brand.
Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or
infrequently bought products. High degree of economic/performance/psychological
risk. Examples include cars, homes, computers, education. Spend a lot of time seeking
information and deciding.
Impulse buying, no conscious planning.

3.4 Categories that Affect the Consumer Buying Decision Process

A consumer, making a purchase decision will be affected by the following three factors:

1. Personal
2. Psychological
3. Social

Personal
Unique to a particular person. Demographic Factors. Sex, Race, Age etc.Who in the family is
responsible for the decision making. Young people purchase things for different reasons than
older people.

Psychological factors

Psychological factors include:

Motives--A motive is an internal energizing force that orients a person's activities

toward satisfying a need or achieving a goal. Actions are effected by a set of motives,
not just one. If marketers can identify motives then they can better develop a
marketing mix.
Physiological
o Safety
 o Love and Belonging
o Esteem
Perception- Perception is the process of selecting, organizing and interpreting
information inputs to produce meaning. Information inputs are the sensations
received through sight, taste, hearing, smell and touch.
 Self-Actualization- Need to determine what level of the hierarchy the consumers are
at to determine what motivates their purchases.

Ability and Knowledge-Need to understand individuals capacity to learn. Learning,

changes in a person's behaviour caused by information and experience. Therefore to
change consumers' behaviour about your product, need to give them new
information about the product...free sample etc.
Attitudes-Knowledge and positive and negative feelings about an object or activity-
maybe tangible or intangible, living or non- living...Attitudes and attitude change are
influenced by consumers personality and lifestyle. Consumers screen information that
conflicts with their attitudes. Distort information to make it consistent and selectively
retain information that reinforces our attitudes. There is a difference between attitude
and intention to buy (ability to buy).
Personality-all the internal traits and behaviours that make a person unique,
uniqueness arrives from a person's heredity and personal experience Traits effect the
way people behave. Marketers try to match the store image to the perceived image of
their customers. There is a weak association between personality and Buying
Behaviour, this may be due to unreliable measures. Nike ads. Consumers buy
products that are consistent with their self-concept.
Lifestyles-Lifestyles are the consistent patterns people follow in their lives.

Social Factors
Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family,
reference groups, social class and culture.

Opinion leaders-Spokespeople etc. Marketers try to attract opinion leaders...they

actually use (pay) spokespeople to market their products. Michael Jordon (Nike,
McDonalds, Gatorade etc.)
Roles and Family Influences-Role...things you should do based on the expectations
of you from your position within a group.
People have many roles.
Husband, father, employer/ee. Individuals role are continuing to change
therefore marketers must continue to update information.
Reference Groups-Individual identifies with the group to the extent that he takes
on many of the values, attitudes or behaviours of the group members.Families,
friends, sororities, civic and professional organizations.Any group that has a positive
or negative influence on a persons attitude and behaviour.The degree to which a
reference group will affect a purchase decision depends on an individuals
susceptibility to reference group influence and the strength of his/her involvement
with the group.
Social Class-An open group of individuals who have similar social rank. US is not a
classless society. US criteria; occupation, education, income, wealth, race, ethnic
groups and possessions. Social class determines to some extent, the types, quality,
quantity of products that a person buys or uses. Lower class people tend to stay close
to home when shopping, do not engage in much prepurchase information gathering.
Stores project definite class images.Family, reference groups and social classes are all
social influences on consumer behaviour. All operate within a larger culture.
Culture and Sub-culture-Culture refers to the set of values, ideas, and attitudes that
are accepted by a homogenous group of people and transmitted to the next
generation.Culture also determines what is acceptable with product advertising.
Culture determines what people wear, eat, reside and travel. Cultural values in the US
are good health, education, individualism and freedom. In american culture time
scarcity is a growing problem. IE change in meals. Big impact on international
marketing.Different society, different levels of needs, different cultural values.

Culture can be divided into subcultures:

o geographic regions
o human characteristics such as age and ethnic background.

Culture effects what people buy, how they buy and when they

buy.
 CHAPTER 4

RESEARCH METHODOLOGY
RESEARCH
Research is a process in which the researcher wishes to find out the end result for a
given problem and thus the solution helps in future course of action. The research has been
defined as “A careful investigation or enquiry especially through search for new fact in any
branch of knowledge”.

4.1 RESEARCH METHODOLOGY

The procedure using, which researchers go about their work of describing, explaining
and predicting phenomena, is called Methodology. Methods compromise the procedures used
for generating, collecting, and evaluating data. Methods are the ways of obtaining information
useful for assessing explanation.

4.2 RESEARCH DESIGN

Research design is the specification of the method and procedure
for acquiring the information needed to solve the problem.

Degree of research question: Exploratory study is done for the study of consumer
buying behaviour
Time Dimension: The study was done using Cross Sectional method(As the Study is done
only once in the pre specified period of 8 weeks, longitudinal study was not possible).

Research Instrument: Questionnaire is the research instrument used here.The researcher

has effectively used both open ended and close ended questions

Method of Data Collection

The data has been collected in two ways.

Primary Data: Primary data are those, which are collected for the first time, and they
are original in character. A suitable combination of Questionnaire techniques, &
discussion with the respondents was used to collect the required primary data. Primary
data gives higher accuracy and facts, which is very helpful for any research and its
findings. The researcher has collected primary data from questionnaire (i.e.) personal
interview.
 Secondary Data: - The secondary data are those, which are already collected by
someone for some purpose and are available for the present study. Secondary data was
collected from the magazines, websites, and other such sources.
Sampled Population
A population is a group of individuals, object or items from which samples are taken for
measurement. All items in any field of enquiry constitute the universe. Here population
refers to the number of consumers and retailers who are using and selling various pens. The
sample population includes people from various categories like Business Person, Service
Person, Student, Housewife's Etc.

Sampling Area

Is the place where the sample is drawn. I take samples from various parts of Burla in
Sambalpur districts of Odisha.

Sample Size

The number of sampling unit selected from the Population is called the size of the sample.
The sample size selected was 100 for consumer’s survey and 20 for retailer’s survey’

Sampling technique

Here the researcher uses probability sampling method.ie simple random sampling is used as
the sampling technique.

4.3 STATISTICAL TOOLS USED

PERCENTAGE METHOD
In this project percentage method test and used. The following are the formula

Percentage of Respondent = No. of Respondent x 100

Total no. of Respondent

CHAPTER- 5 DATA ANALYSIS AND
INTERPRETATION
 DATA ANALYSIS AND INTERPRETATION

The Analysis of data involves identifying the relations of quantified information to the
research problem in hand. Here percentage analysis is the tool for analyzing the data and
establishing a relationship between the information gathered and the research problem.

INTERPRETATION
The process of drawing inferences from the analyzed data in a research process is called as
interpretation. It refers to the technique of drawing inference from the collected facts and
explaining the significance of those inferences after an analytical and experimental study. It is
a search for broader and more abstract means of the research findings.
5.1 CONSUMER BUYING BEHAVIOUR QUESTIONNAIRE ANALYSIS

SAMPLE SIZE DETAILS:

Sample Population: Business Person, Service Person, Student, Housewife's Etc.

Sample Size: 100 Consumers
Age Group:

Sl.
No. Age Group Number

1 15-20 52

2 20-25 31

3 25-35 9

4 35-50 5

5 Above 50 3

Source: - Field survey

Table 5.1.1 Age group

Above
35-50 50
5% 3%
25-35
9%
15-20
52%
20-25
31%

Chart 5.1.1 Age group

Occupation:
 Sl.
No. Category Number

1 Student 76

2 Business Person 12

3 Regular Employee 8

4 Others 4

Source: - Field survey

Table 5.1.2 Occupation details

Regular Others
Employee 4%
Busine 8%
ss
Person
12%
Student
76%

Chart 5.1.2 Occupation details

Q 1). Which type of Pen do you currently use?

Sl. No.
Category Number

1
Ball Pen 84

2
Gel Pen 12

3 Ink Pen 2

4 Premium pen 2
 Source: - Field survey

Table 5.1.3 Types of pen using by consumer

 Gel Premium
Pen Ink Pen pen
12% 2% 2%

Ball Pen
84%

Chart 5.1.3 Type of pen using by consumer

Findings: - Almost 84% of the respondents say that they use Ball Pen. And the next best
usage is of Gel Pen by 12%, Ink & Premium Pen are least preferred by the consumers in
the modern or present market condition
Inference: - Majority of the consumers prefers and uses Ball Pen than any other type of
pens

Q 2). Which Brand Of Ball Pen do prefer to write?

Purpose: - Main purpose behind this question is to know the most preferred brand in
the current market situation

Sl. No. Brands Number

1 Classmate 9

2 Reynolds 12

3 Cello 46

4 Lexi 25

5 Linc 3

6 Italia 2

7 Others 3

Source: - Field survey

Table 5.1.4 Most preferred brands

 Lin Italia Others Classmate
c
2% 3% 9%
3% Reynold
s
Lexi 12%
25%

Cello
46%

Chart 5.1.4 Most preferred brands

Findings: - From the above chart it has been analysed that majority of the consumers (i.e.)
46% of them prefer Cello as a brand to be used which is followed by Reynolds & Lexi by
12% & 25% responses whereas classmate pen are used by 9% only.

Inference:- Cello is the most preferred brand among consumers than its competitors

Q 3). What is the price range in which you generally used to buy a pen?

Sl.
Price Range Number
No.

1 Below RS 5 20

2 Beteen RS 5 -Rs 10 60

3 Between RS 10-Rs15 12

4 Between RS 15-Rs20 5

5 Avove 20 3

Source: - Field survey

Table 5.1.5 Most selling price range of pens
 Between RS Below
Avove 20 15- RS 5
Between RS
10- 3% Rs20 20%
Rs15 5%
12%

Beteen RS 5 -Rs
10
60%

Chart 5.1.5 Most selling price range of pens

Findings: - It can be analyzed from the above graph that out of the total responses 60% prefer
pen in Rs 15 – 20 price range. Whereas the next most preferred price range is Below Rs 5. The
high price range ranging from Rs 15 – 20 & above that is least prefer by the consumers.
Inference:- Consumer mostly favors and prefer their pen (either Ball or Gel) in the
price range of Rs 5-10
Q 4).From where do you prefer to buy pen?

Sl. No. Type Number

1 Stationary shops 81

2 Super market 8

3 Shopping malls 9

4 Others 2

Source: - Field survey

Table 5.1.6 Places of purchase

Others
Shopping malls
2%
9%
Super market
8%

Stationary
 shops
Chart 5.1.6 Places of purchase

Findings: - It can be analysed from the above graph that out of the total responses, 81%
prefer stationary shops as their place of purchase
Inference: - Consumer mostly prefers to buy their pen from stationary shops.

Q 5). Which Characteristics of Pen Influence your Buying Decision?

Sl. No. Characteristic Number

1 Smoothly writing 68

2 Grip 10

3 Price 8

4 Long-Life 6

5 Brand Name 8

Source: - Field
survey

Table 5.1.7 Factors influencing buying decision

Long- Brand
Life Name
Price 6% 8%
8%
Grip
10%

Smoothly
writing
68%

Chart5.1.7 Factors influencing buying decision

Findings: - From the above graph that it can be identified that 68% of consumer‟s buying
decisions are influenced by smoothly writing. The grip and brand name of pen have 10% and
8% influence on buying decision.
Inference: - Majority of consumer‟s buying decisions are influenced by smoothly writing

Q 6). Which Advertising Media Influences You The Most?

Sl. No. Media Type Number

1 TV Advertisements 61

2 Banners & hoarding 5

3 Newspapers & Magazines 19

 4 Internet 15

Source: - Field survey

Table 5.1.8 Types of advertising media

Internet
15%
Newspaper
s
&
TV
Magazines Advertise
m
19%
ents
Banners &
61%
hoarding
5%

Chart 5.1.8 Types of advertising media

Findings: - From the chart it can be concluded that having almost 61% of the responses are
influenced by TV Advertisements. The next most influencing media is Newspaper impacting
the buying decision. Banners & hoarding is the least influencing among all media.
Inference: - TV Ads are the most influencing Ad impacting the buying decision of different
consumer segments

Q 7). Is your buying decision influence In-Shop advertisements?

Sl. No.
Response Number

1
Yes 29

2
No 71

Source: - Field survey

Table 5.1.9 Effect of In-shop advertisement

 Yes
29%

No
71%

Chart 5.1.9 Effect of In-shop advertisement

Findings: - From the chart it can be concluded that 71% of respondent‟s buying decision are
not influenced by in shop advertisement. Only 29 % of respondents believes that their buying
decision are influenced by In shop ads

Inference:-Majority respondent‟s buying decision are not influenced by in

shop advertisement

If Yes, Which influences the most?

Sl. No. Type Number

1 Posters 10

2 Hoardings 1

3 Pen Stands 12

4 Stickers 5

5 Others 1

Source: - Field survey

Table 5.1.10 Most influencing In-shop advertisements

Stickers Other
17% s
3%
Posters
35%

Pen Stands
41%

Hoardings
4%

Chart 5.1.10 Most influencing In-shop advertisements

Findings: - From the chart it can be concluded that Pen stands are the most influencing In
shop Ad impacting the buying decision of different consumer segments having almost 41%
of the responses. Hoarding is the least influencing among all media

Inference:- Pen stands are the most influencing In shop Ad impacting the buying decision
of different consumer segments
Q 8). Who influence your buying decision most?

Sl. No.
Type of Respondents Number
 1
Parents 18

2
Friends 64

3
Colleagues 9

4
Sales person 8

5
Others 1

Source: - Field survey

Table 5.1.11 Persons who influencing buying decision

sales person others Parents

colleague 8% 1% 18%
s
9%

friends
64%

Chart 5.1.11 Persons who influencing buying decision

Findings: - 64% of the respondents buying decision are influenced by friends.

The next most influencers are parents.

Inference: - Friends are the most influencing group in the buying decision
of different consumer segments

Q 9). Do You Choose Only One Brand?

Sl. No.
Response Number
 1
Yes 60

2
No 40

Source: - Field survey

Table 5.1.12 Number of brand loyal customers

 No
40%
Yes
60%

Chart 5.1.12 Number of brand loyal customers

Findings: - From the above chart it is analysed that 60% of responses are loyal to any brand
where as 40% of respondents are do not loyal and stick to only 1 brand.

Inference: - Majority of the respondents stick or are loyal to particular one brand

If Yes, Which brand?

Sl. No. Brand Number

1 Classmate 6

2 Reynolds 10

3 Cello 29

4 Lexi 14

5 Linc 2

6 Italia 1

7 Others 1

Source: - Field survey

Table 5.1.13Brand loyalty among different pens

Li Itali Other Classma

nc a s te
3 2% 2% 9%
%
Reynolds
Lexi 16%
22%
Cello
46%
 Chart 5.1.13 Brand loyalty among different pens

Findings: - From the above chart it is analysed that brand loyalty is highest in cello ie.46%
followed by Lexi and Reynolds .Linc and Italia have the least no of brand loyal customers.

Inference:- Cello has the maximum brand loyal customer‟s among different brands

Q10) Why do you purchase the same brand?

Sl. No. Category Number

1 High Quality 46

2 Brand Image 11

3 Easy Availability 24

4 Value for money 16

5 Others 3

Source: - Field survey

Table 5.1.14 Reasons for brand loyalty

Others
Value for 3%
money
16%
High Quality
46%
Easy
Availability
24%

Brand Image
11%
Source: - Field survey
 Chart 5.1.14 Reasons for brand loyalty

Findings: - From the above chart it is visualized that 46 % of respondent‟s reason for
brand loyalty is high quality. Easy availability and value for money are the next reasons
 Inference:- The main reason for brand loyalty in consumers is high quality of pen.

Q11). Rank the brands of pens according to your preference from 1-5?

Sl.
No. Brand 1ST 2ND 3RD 4TH 5TH
1
Classmates 12 14 22 27 25

2
Cello 42 27 9 10 12

3
Reynolds 24 24 27 14 11

4
Lexi 17 25 14 26 18

5
Italia 5 10 28 23 34

Table 5.1.15 Ratings of brand performance

45
40

35
respondents

20

30

25

15
of
 1ST

2ND

3RD

4TH

5TH

Chart 5.1.15 Ratings of brand performance

Findings: - From the above chart it is visualized that 42 respondents has given first rank
and 27 gave 2nd rank to Cello. Italia brand is the least preferred brand among consumers.

Inference: - Cello has got the highest average rating followed by Lexi and Reynolds.

Q 12) Number of pen usually buy in a year?

 Sl. No. Number of
Number of Pen Respondents

1 Less than 2 9

2 2 to 5 18

3 5 to 10 25

4 More than 10 48

Source: - Field survey

Table 5.1.16 Average no. of pen buying in a year

Less
than 2 2 to 5
9% 18%

More than
10
48%
5 to 10
25%

Chart 5.1.16 Average no. of pen buying in a year

Findings: - It can be analysed from the above graph that out of the total responses 48%,
purchase more than 10 pens in a year. Only 9% of respondents buy less than 2 pen in a year.
Inference:- Most of the consumer purchase more than 10 pens in a year

Q 13). Do You Refill Your Pen regularly?

Sl. No.
Response Number

1
Yes 37

2
No 63
 Source: - Field survey
Table 5.1.17 Number of regular refilling customers
 Yes
37%

No
63%

Chart 5.1.17 Number of regular refilling customers

Findings: - From the chart it can be concluded that 63% of respondents do not refill their
pen and only 37 % refill their pen.

Inference: - Majority of respondents do not refill their pen

If No, Why

Sl. No. Response Number

1 Pen Cost Is Negligible 42

2 Replacement results into Poor

Performance 12

3 Refill Is Unavailable 9

4 Others 1.2

Source: - Field survey

Table 5.1.18 Reasons for non- refilling of pens

Refill Is Others
Unavailable 2%
14%

Pen Cost Is
Negligible
65%
Replacemen
t
results into
Poor
Performanc
e
 Chart 5.1.18 Reasons of non- refilling of pens

Findings: - From the chart it can be concluded that 65% of customers do not refill their pen
because of pen cost is negligible. For 19 % the reason is that replacement results into poor
performance.
Inference: - From the chart it can be concluded that most of customers do not refill their
pen because of pen cost is negligible.

Q14) Have you purchased classmate pen?

Sl. No. Response Number

1 Yes 39

2 No 61

Source: - Field survey

Table 5.1.19 Number of customers who have used classmate pens

Yes
39%
No
61%

Chart 5.1.19 Number of customers has used classmate pens

Findings: - From the chart it can be concluded that 39% of respondents have used classmate
pens n and 61 % of respondents never used classmate pen.

Inference:-Majority of respondents has never used classmate pen

 RETAILR’S QUESTIONNAIRE ANALYSIS

a) Type of store

Sl.
No. Category Number
1 Stationary store 30
2 Department store 9
3 Supermarket 6
4 Malls 3
5 Others 2
Source: - Field survey
Table 5.2.1 Types of stores

Others
Malls
4%
Supermark 6%
et
12%
Stationary
store
60%

Department
store
18%

Source: - Field survey

Chart 5.2.1 Types of stores

B) Average monthly Sales:

Sl. No. Monthly Sale Number

1 Less than 1 lakh 28
2 1-3lakh 11
3 3-5lakh 5
4 5-10lakh 2
5 Above 10 lakhs 4
Source: - Field survey
Table 5.2.2 Average monthly sale
 Above 10
5-10lakh lakhs
3-5lakh 4% 8%
10%

Less than 1 lakh

1-3lakh 56%
22%

Chart 5.2.2 Average monthly sale

Q1) In which price range you sell maximum pens?

Sl. No.
Price Range Number
1
Less than 7Rs 26
2
7 to 10 21
3 10 to 15 3
4 15 t023 0
5
Above 25 0

Source: - Field survey

Table 5.2.3 Price range of maximum pen sale

10 to 15
6%

Less than 7Rs

7 to 10 52%
42%
Chart 5.2.3 Price range of maximum pen sales
 Findings: - From the above chart it is visualized that 52 of respondents use pen in less
than 7 Rs and 42% uses in the price range of 7-12

Inference: - Majority of the retailer’s maximum sell pens in the price range of less than
7Rs

Q 2) Which type of pen you sell the most?

Sl. No.
Type of Pen Number
1
Ball Pen 48
2
Gel Pen 2
3
Ink Pen 0
4
Premium pen 0

Source: - Field survey

Table 5.2.4 Most selling pen types

Gel Pen
4%

Ball Pen
96%

Chart 5.2.4 Most selling pen types

Findings: - From the above chart it is visualized that almost 96% of the respondents say
that they sell Ball Pen more.

Inference: - Majority of the retailers sells Ball Pen more than others
Q3) Maximum sales under the price range between Rs5-Rs.20 are for which
brand of pens?

Sl. No.
Brands Number
1
Cello 38
2
Lexi 9
3
Reynolds 3
4
Classmate 0
5
Linc 0
6
Flair 0
7
Others 0

Source: - Field survey

Table 5.2.5 Most selling pen in Rs 5-20 price range

Reynold Classmat Other

Cello Lexi s e Linc Flair s
0% 0% 0% 0%
6%
18%

76%

Chart 5.2.5 Most selling pen in Rs 5-20 price range

Findings: - From the above chart it has been analysed that majority of the retailers (i.e.)
76% of them sells Cello which is followed by Lexi & Reynolds by 18% & 6% maximum

Inference:-Most of the retailers have the stock of cello in their store.

Q4)-Sales of pens between the ranges of Rs5-Rs.20 is high during which period of
time?
Sl. No. Time Number
1 High during exams 15
2 Stable throughout the year 6
3
When new Schemes are introduced
0
4 School opening time 29
Source: - Field survey

Table 5.2.6 Maximum pen selling season

High during
exams
30%

School
opening time
58%
Stable
throughout
the year
12%
Chart 5.2.6 Maximum pen selling season

Findings: - From the above chart it has been analysed that 58% retailers pen sale happens
during school opening time followed by exam time by 30% .
Inference:- Majority of the pen sale happens during school opening time

Q5)-Please tick the brands of pen you keep in your store

Sl. No. Name of Brands Number

1 Classmate 12
2 Reynolds 42
3 Cello 48
4 Lexi 37
5 Linc 10
6 Flair 18
7 Italia 11
8 Lexor 8
9 Win 23
Source: - Field
survey
Table 5.2.7 Brands of pen keeping in each store
 60
ofresponden

50
ts

40

30
Series 1
20
No

10

Brand name

Chart 5.2.7 Brands of pen keeps in each store

Findings: - Among various respondents 48 stores have the stock of cello pen and 42 have
Reynolds in their shop

Inference:- From the above chart it has been analysed that majority of the stores have the
stocks of Cello and Reynolds pens .Lexor and Linc are the least stocking pens in the stores.

Q6)-When people buy pens what among the following options do they prefer?

Sl. No.
Characteristic Number
1
Smoothly writing 28
2
Grip 2
3
Price 5
4
Long-Life 2
5
Brand Name 13
6
Looks 0
Source: - Field survey
Table 5.2.8 Factors influencing buying decision
 Brand Name
26%

Long- Smoothl
Life y
4% writing
56%
Price
10%
Grip
4%

Chart 5.2.8 Factors influencing buying decision

Findings: -56% respondents buying decision are influenced by smoothly writing and
grip influence only 4%

Inference:- It can be concluded that smoothie writing is the most influencing factor
in the buying decision of different consumer segments is smoothly writing.

Q7 ) Retailer’s influence towards customer in their buying decision?

Sl. No.
Response Number
1
High 1
2
Average 9
3
Low 31
4
Nil 9

Source: - Field survey

Table 5.2.9 Retailer’s influence towards customer in their buying decision

Nil High Average

18% 2% 18%

Low
62%
Chart 5.2.9 Retailer’s influence towards customer in their buying decision
 Findings: - From the above graph that it can be identified that in most of the
consumer buying decision process the influence of sales people is low. ie .(62%)
Inference:- For most of the consumer buying decision process the influence of sales
people is low

Q8) What motivate retailer’s to push the products more to customers?

Sl. No. Characteristic Number

1 High margin 41
2
Schemes 3
3
Quality of products 6
4
Others 0

Source: - Field survey

Table 5.2.10 Retailers motivating factors to push the products

Quality of
products
12%

High margin
Schemes 82%
6%

Chart 5.2.10 Retailers motivating factors to push the products

Findings: - From the above graph that it can be identified that for 82 % of
respondents high margin is the pushing factor for retailers to sell more.

Inference:- High margin is the main pushing factor for retailers to sell more.

Q9) How often retailers replenish their stocks?

Sl. No.
Time Duration Number
1
Every week 9
2
Once in two week 27
 3
Once in a month 11
4 Others 3

Source: - Field survey

Table 5.2.11 Types of stock replenishing

Once in
a Others Every
week
month 6%
18%
22%

Once in
two
week
54%

Chart 5.2.11 Types of stock replenishing

Findings: - From the above graph that it can be identified that most of (54%) of retailers
replenish their stocks once in two weeks and 22% of respondents replenish once in a
month.

Inference:- Most of of retailers replenish their stocks once in two weeks

Q10) Do you think buying decision are influenced by In-Shop

advertisements?

Sl. No.
Response Number
1
Yes 23
2
No 27

Source: - Field survey

Table 5.2.12 Influence of In-shop advertisements

Yes
No 46%
54%
 Chart 5.2.12 Influence of In-shop advertisements

Findings: - From the above chart it is analyzed that, only 46% think that In-shop
advertisement has an influence on customer buying decision.

Inference:- Majority of the respondents don’t think that in-shop advertisement

influence consumer buying decision

If Yes, Which influences the most?

Sl. No.
Type Number
1
Posters 18
2
Hoardings 4
3
Pen Stands 14
4
Stickers 12
5
Others 2

Source: - Field survey

Table 5.2.13 Types of In-shop advertisements

Others
4%
Stickers Poster
24% s
36%

Pen Stands
28%

Hoardings
8%

Chart 5.2.13 Types of In-shop advertisements

Findings: - From the chart it can be concluded that for 36 % of respondents Posters are the
influencing in shop advertisement. The next most influencing is pen stands with 28%. Hoarding
& others are the least influencing among all.
Inference:- Posters are the most influencing in shop advertisement.

Q11) For non-brand loyal customers, which brand you suggest most?
 Sl.
No. Brand Number
1
Classmate 2
2
Reynolds 10
3
Cello 14
4
Lexi 23
5
Linc 0
6
Flair 1

Source: - Field survey

Table 5.2.14 Brands suggested for non-brand loyal customers

Flair Classma
2% te
4%
Reynolds
20%
Lexi
46%

Cello
28%

Chart 5.2.14 Brands suggested for non-brand loyal customers

Findings: - 46% of retailers suggest Lexi for non-brand loyal customers while only 4%
suggests classmate pen

Inference:- For non-brand loyal customers most of retailers suggest Lexi followed by Cello
and Reynolds

Q12) What make you to do so?

Sl. No.
Characteristic Number
1
High margin 43
2
Schemes 4
3
Quality of products 3
 4
Brand image 0
5
Others 0

Source: - Field survey

Table 5.2.15 Influencing factors of retailer’s brand suggestion

High Quality of
margin Schemes products

Brand
image Others
6% 2%
8%

84%

Chart 5.2.15 Influencing factors of retailer’s brand suggestion

Findings: - From the above chart it is analysed that for 84 % of respondents high margin is the
main reason for suggesting a particular brand to non-brand loyal customers by the retailers

Inference:- High margin is the main reason for suggesting a particular brand to non-brand
loyal customers by the retailers

Q13)Do you have classmate pen in your store?

Sl. No.
Response Number
1
Yes 12
2
No 38

Source: - Field survey

Table 5.2.16 No of stores having classmate pens
 Yes
24%

No
76%

Chart 5.2.16 No of stores having classmate pens

Findings: - From the chart it can be concluded that 76% of respondents have classmate pens
in their store while 24 % of respondents doesn’t have.

Inference:-Majority of the stores doesn‟t have classmate pen in their store

If Yes, What makes classmates to sell more?

Sl. No.
Characteristic Number
1
Improve quality 1
2
Better margin 1
3
More advertisement 5
4
Better availability 6
5
Others 0

Source: - Field survey

Table 5.2.17 Factors for improving classmate’s sale

Improve
quality
8%
Better
availabilit
y
50%

More
advertise
ment
42%

Chart 5.2.17 Factors for improving classmate’s sale

Findings: - From the chart it can be concluded that 50% of retailers think that better
availability will helps classmate to sell more. For 42 % more advertisement results into
better sales.
Inference: - Most of respondents believe that better availability & advertisement results into
better sales

If No, Are you interested to sell classmate pen?

Sl.
No. Response Number
1
Yes 32
2 No 6

Source: - Field survey

Table 5.2.18 Number of stores interested to sell classmate pen

No
16%

Yes
84%

Chart 5.2.18 Number of stores interested to sell classmate pen

Findings: - From the chart it can be concluded that 84% of respondents are classmate
interested to sell classmate pens and 16 % of respondents are not interested.

Inference:-Majority of respondents who are not selling classmate pen are willing to sell
classmate pen
CHAPTER 6 –FINDINGS &

SUGGESTIONS
6.1 FINDINGS
Amongst different types of Pen, Ball pen is preferred by most of the consumers
Cello Brand enjoys the market leader position and it is also preferred by the
majority of the consumers for writing among the different brands of Pen available in
the market.
Among the various price of pens available in the market, between Rs 5-10 price
level is the most popular level.
Most of the consumers are prefer to buy pen from stationary shops.
Smooth writing is the most influencing pen characteristic in the consumer buying
process of pen
TV advertisement is the most influencing media for customers to buy pen.
Though the effect of In-shop advertisement towards customer is minimum, among
the various mediums pen stands influences the most.
Friends are most influencing category of people in consumer buying decision of pen.
Though there is no strong brand loyalty towards any brands, high quality can make
brand loyal customers.
Most of the customers buy more than 10 pen in a year on an average basis
Customers are less inclined to refill their pen because the pen cost is negligibly small
Among the surveyed customers only 39% has used classmate pens.
Maximum sale of pen happens during the school opening time.
High margin is the main pushing factor for retailers to sell more products
Most of the retailers replenish their stocks once in two weeks
Among the surveyed retailers only 24% have classmate pen in their store
In retailer‟s opinion by improving the availability of classmate pen, the sales can
be improved.
6.2. SUGGESTIONS
The Suggestions given are based on the consumer survey and its analysis and studying the
Companies Own Marketing Mix at ITC Ltd and as per my knowledge regarding the concerned
subject.

Cello Company is regarded as No 1 market leader due to its product verities mainly in
the Price range ranging from Rs 5 – 20 .In this Low Price Segment where majority of
consumers prefer to buy their pen. At the same price range Classmate have very less
products which can satisfy consumer need. So hereby I suggest that Classmate should
Come up with more products in Effective Price range Of Rs 5 – 20, targeted to different
consumer segments.
The practice of “Use and Throw” is more visible in consumers, so classmate should
bring some models in below 5 Rs price level.
Company should strongly take care of availability of pens at rural retail outlets.
As Classmate is relatively new to the market consumers are not that much aware
about the product, so company should focus more on promotional activities
Compare to other brands classmates have limited or minimum In-shop advertisement
objects, by increasing this brand awareness can be improved.
From the survey it is clear that different variable/features influence buying decision of
consumer in different segments. Thus Company should not have a common Positioning
for all Target Markets. The companies should try to focus on a target group by
focusing on various characteristics that affect their buying decision

Thus if the Company uses all the above mentioned features for specific target market
and makes the product, fixes the Price and positioned properly and effectively than it
can definitely outperform it competitors in Different Segments.
CHAPTER 7–CONCLUSION
 CONCLUSION

The project entitled “A Study of the Consumer Buying Behaviour of Classmate Pen”
has helped in studying the various aspects of consumer behaviour especially towards pens.

The study also helped in understanding and analyzing customer satisfaction about services and
products offered to customers. Every player in the pen industry is trying to cover more market
share than the other. So the company must be more alert providing high quality service and
awareness to customers.

The researcher hope the company will find his findings relevant and sincerely hope it
uses his suggestions enlisted, which he hopes will take them miles ahead of competition. In
short, the researcher would like to say that the very act of the concerned management at ITC
Ltd in giving him the job of critically examining consumer buying behaviour towards pen of
the company.
 BIBLIOGRAPHY

ITC India Ltd -Annual Report (2012).

Kothari, C.R.. Research methodology. New Delhi: Tata Mc Graw-Hill Ltd.
Das ,Bhagaban & Das ,Debadutta (2006) .Consumer Buying Behaviour In India: New
Delhi: Tata Mc Graw-Hill Ltd
Solomon,R,Michael(2010). Consumer Behaviour - Buying, Having, And Being,
Prentice Hall PTR
Ali ,S.S,. Thakur,A.K,.Madhavan,K,.Palat(2009)-Models in Consumer Buying
Behaviour. Deep & Deep Publication

WEB SITE
http://www.itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-
report-2013/content.aspx ( June,2013)
http://www.citehr.com/29099-hr-issues-retailing-business-plan.html (June,2013)
http://www.scribd.com/doc/82186216/Indian-Pen-Industry-Project (”n.d”)
APPENDIX
Consumer Buying Behaviour Questionnaire
Name -----------------------------
Age Group:
(a ) 15-20 [ ] (b)20-25 [ ] (c) 25-35 [ ]
(d) 35-50 [ ] (e) Above 50 [ ]
Place______________________
Occupation:
Student [ ] Business Person [ ]
Regular Employee [ ] Others [ ] _____________
Q 1). Which type of Pen do you currently use?
a) Ball Pen [ ] b) Gel Pen [ ]
c) Ink Pen [ ] d) Premium pen [ ]
Q 2). Which Brand Of Ball Pen do prefer to write?
a) Classmate[ ] b) Reynolds [ ] c) Cello[ ]
d) Lexi[ ] e) Linc [ ] f) Italia [ ]
g) others____________
Q 3). What is the price range in which you generally used to buy a pen?
( a) Below Rs 5 [ ] (b) Between Rs 5-Rs 10 [ ]
(c) Between Rs 10-Rs 15 [ ] (d) Between Rs 15-Rs 20 [ ]
(d) Above 20[ ]
Q 4).From where do you prefer to buy pen?
(a) Stationary shops [ ] (b) Super market [ ]
(c) Shopping malls [ ] (d) Others____________
Q 5). Which Characteristics of Pen Influence your Buying Decision?
a )Smoothly writing [ ] b)Grip[ ] c) Price[ ]
d)Long-Life [ ] e)Brand Name [ ]
Q 6). Which Advertising Media Influences You The Most?
a) TV Advertisements[ ] b) Banners & hoarding[ ]
c) Newspapers & Magazines[ ] d) Internet[ ]
Q 7). Is your buying decision influence In-Shop advertisements?
a) Yes [ ] b) No[ ]
If Yes, Which influences the most?
a)Posters [ ] b) Hoardings[ ]c)Pen Stands[ ] d)Stickers
 Others__________________
Q 8). Who influence your buying decision most?
a) Parents [ ] b) friends[ ] c) colleagues[ ] d)sales person[ ] e) others ]
[
Q 9). Do You Choose Only One Brand?
a) Yes [ ] b) No [ ]
If Yes, Which brand?
a) Classmate [ ] b) Reynolds [ ] c) Cello [ ]
d) Lexi [ ] e) Linc [ ] f) Italia [ ]
Q10) Why do you purchase the same brand?
a) High Quality [ ] b) Brand Image[ ] c) Easy Availability [ ]
d)Value for money[ ] e)others____________
Q 11).Rank the brands of pens according to your preference from 1-5?
Classmates[ ] Cello[ ], Reynolds[ ], Lexi[ ], Linc[ ], Italia[ ]
Q 12) Number of pen usually buy in a year?
a)less than 2[ ] b) 2-5 [ ] c)5-10 [ ] d)more than 10[ ]
Q 13). Do You Refill Your Pen regularly?
a) Yes b) No
If No, Why
a) Pen Cost Is Negligible b) Replacement results into Poor
Performance
c) Refill Is Unavailable d)Specify If Others,______________
Q14) Have you purchased classmate pen?
a) Yes [ ] b) No[ ]
Retailers Questionnaire
Name of the store: ___________________________
Location:_______________________________
Contact No:_____________________________
Type of store
a) Stationary store [ ] b) Department store[ ] c) Supermarket [ ]
d) Malls [ ] e) others______________
Average monthly Sales:
a) less than 1 lakh[ ] b)1-3lakh [ ] c)3-5lakh [ ]
d) 5-10lakh[ ] e) above 10 lakhs[ ]
Q1) In which price range you sell maximum pens?
a) Less than 7Rs[ ] b)7-10 [ ] c)10-15[ ]
d)15-25 [ ] e)Above 25[ ]
Q 2) Which type of pen you sell the most?
a) Ball Pen [ ] b) Gel Pen [ ]
c) Ink Pen [ ] d) Premium pen [ ]
Q3) Maximum sales under the price range between Rs5-Rs.20 are for which brand of pens?
(Rank in order of sales)
(a) Classmate [ ] (b) Reynolds[ ]
(c) Cello[ ] (d) Lexi [ ] e)Linc [ ] f)Flair[ ]
(g) Others[ ] (please specify)___________
Q4)-Sales of pens between the ranges of Rs5-Rs.20 is high during which period of
time? (a) High during exams [ ] (b) Stable throughout the year [ ] (c) When new
Schemes are introduced[ ]. (d) School opening time[ ]
Q5)-Please tick the brands of pen you keep in your store
a) Classmate [ ] b) Reynolds[ ] c) Cello[ ] d) Lexi [ ]
e) Linc [ ] f)Flair[ ] g) Italia[ ] h)Lexor [ ] i)Win[ ]
Q6)-When people buy pens what among the following options do they prefer?
a )Smoothly writing [ ] b)Grip[ ] c)Price[ ]
d)Long-Life [ ] e)Brand Name [ ] d)Looks[ ]
Q7 ) Your influence towards customer in their buying decision?
a)High b)Average c)Low d)Nil
Q8) What motivate you to push the products more to customers?
a) High margin [ ] b)Schemes[ ] c)Quality of products [ ]
 d) Others__________
Q9) How often you replenish your stocks?
a)every week[ ] b)once in two week[ ] c) once in a month [ ]
d)more_________
Q10)Do you think buying decision are influenced by In-Shop advertisements?
a) Yes [ ] b) No[ ]
If Yes, Which influences the most?
a)Posters [ ] b) Hoardings[ ]c)Pen Stands[ ] d)Stickers
Others__________________
Q11) For non-brand loyal customers, which brand you suggest most?
a) Classmate [ ] (b) Reynolds[ ]
(c) Cello[ ] (d) Lexi [ ] e)Linc [ ] f)Flair[ ]
Q12) What make you to do so?
a)High margin[ ] b)Schemes[ ]c)Quality of products[ ]
d)Brand image [ ] others[ ] ____________
Q13)Do you have classmate pen in your store?
a) Yes [ ] b) No[ ]
If Yes
What makes classmates to sell more?
a) Improve quality b) better margin c) more advertisement
d) Better availability e) others_____________
If No
Are you interested to sell classmate pen?
a) Yes [ ] b) No[ ]
PORTFOLIO MIX OF CLASSMATE PEN AND ITS COMPETIOTORS

1) CLASSMATE

Type Model Price

Ball Pen B First 5
B Qwick 5
B Neat 5
B Speed 5
B Fine 6
B Positive 9
Octo Flo 10
UVO 10
Radeon 10
Crypton 10
Genghis 15
Gel Pen Geloneat 5
Gelo Fun 5
Gelowiz 5
Octane 10
Attila 15
Deimos 20
Galactic 20
Trojan 25
Premium
Pens Beethoven 90
Archimedes 130
Chopin 150

2) CELLO

TYPE MODEL PRICE

Ball Pen Jolly 3
Faster 5
Nice 5
Trimate 5
Uno 5
Easy Write 5
Tip Top 5
Delta 5
Nova 5
Crown 5
Retra Fashion 5
Teenz 5
Quick 5
Merit-GL 5
Speed 5
Swift 5
Finegrip 6.5
Zippy Ball 7.5
Gripper 7.5
Technotip 8
Point 5 8
Maxwriter 9
pin point 9
Technotip XS 9
Super Fine 10
Melody 10
Glider XS 10
Colour Joy 10
Soft Feel 10
Flow Mate 10
Superglide DX 10
Butterflow 10
Top Ball Click 10
Soft Write 10
X-Presso 10
Spectra 10
Aero Piont 10
2X 10
Maxriter XS 10
Pinpoint XS 10
Liquiball 10
Topball 10
Fun Glitter 10
Pepersoft 15
Power Ball 15
Jotdot 15
Steel-O 15
Paper soft premier 20
Zero pressure 20
X-Caliber 20
Power Max 20
Power Metal 20
5X 25
Cutie Gel 25
Saphire 30
Bold Writer 30
 Benz 35
Jetset 45
Duke 49

Gel pen Rs 5/ Gel pen 5

My Gel 5
Class Gel 5
Bunny 5
Magna 5
Liquiball 6
Wow 6
Butter Gel 10
Flo Gel 10
Zoom Colour Gel 10
Colour Mate 10
I-Zone 10
Jingle 10
Pin 10
Trendy 10
Melody 10
Glide 10
Pointec Gel 15
Accutek 15
Sign Roller 25
Jelflow 25
Aviator 25
Express 30
R Gel 30
X-Pert Gel 35

Roller
Pen Rolly 40
Benz 55

Metal
Pens 4 colour 30
Arion 30
Smart Jet 30
Black Jack Gold 35
Benz 40
Jetset 40
Sky Writer 49
Jet Ace 49
Enigma Classic 49
Accugrip 55
 Fire 75
Prime 75
Venice 75
Executive 75

3) REYNOLDS

TYPE MODEL PRICE

Ball Pen Champ 5
Brite 5
Buero 040 5
Bold 5
Fusion 5
Fusion Bold 5
045 fine carbure 6
Eurolism 6
Officerite 6
045 Student 6.5
Energi 8
Zetpoint 10
Liquiflo 10
Electro 10
Liquiflo Student 10
Retractable Ezio Pen 10
Jetter regular 15
Revo 15
Jetter Grip 15
Jetter Aerosoft 20
Jetter Designer 20
Jetter Aviator 20
Jetter Youth 20
Jetter Glitz 20
Jetter Metallica 25
Jetter Chroma- DX 25
Jetter Aviator -MX 30
Trimax 35
Jetter Metalica FX 40
Premier Gold 50
Jetter Numatic 60
Premier 90
Gel Pen Mera Gel 5
Jeffi Gel 5
Mera Gel I 6
Mera Gel II 6
Razor Active 10
Razor Gel I&II 10
Force Gel 10
Eterno Gel 15
V-Max Gel 20
Trimax 35

4) LINC
TYPE MODEL PRICE
Ball
Pen Glycer 5
Thrill 5
Retract 5
Crazy 5
Smart 5
Executive
Ball 10
Glitter 10
Meeting 15
Seramic 25
Joy 35
Classic 35
Class 40
Swift 70
Signature
Gold 85

Uni
Ball Jestry 101 20
Uni Ball 25
Uni 120 25

Gel
Pen Linc 070 5
Linc 070
gel 6
Ocean 6
5)CLARO PEN

Price Per
Ball Pen/
Name of the Product Piece
Gel Pen.
MRP.

NOVA Ball Pen 3

SWIFT Ball Pen 3

GENIUS Ball Pen 5

BRIO Ball Pen 5

COOL Ball Pen 5

LUCKY Ball Pen 5

X CEL Ball Pen 6

SONIC Ball Pen 6

C-999 Ball Pen 6

BIG BENN 100 Ball Pen 7

C-100 Ball Pen 7

ROCK 200 Ball Pen 10

SMOOTHFLO
Ball Pen 10
W
ANGEL Ball Pen 10

ARIA Ball Pen 10

ULTIMA(NEW) Ball Pen 10

IVY(NEW) Ball Pen 10

JAZZ(NEW) Ball Pen 10

VISION Ball Pen 10

CR-54 Ball Pen 10

 CL-108 Ball Pen 10

IRIS Ball Pen 10

DURO Ball Pen 15

BOSS Ball Pen 15

CR-45 Ball Pen 15

CL-333 Ball Pen 15

RICO Ball Pen 15

EXPERT(NEW) Ball Pen 90

Ball Pen 110

CENTURY(NEW)
Ball Pen 130
SOLITAIRE(NEW)
ACCENT(NEW) Ball Pen 150

LUCKY
Gel Pen 5
7(NEW)
RIO Gel Pen 5
 TEEN Gel Pen 5

MASTER Gel Pen 5

SX-5 Gel Pen 5

MACK Gel Pen 5

CHAMP Gel Pen 5

SONIC Gel Pen 6

CG-999 Gel Pen 6

CG-109 Gel Pen 10

HONEY Gel pen 10

SUPER HERO Gel Pen 10

FUN(NEW) Gel Pen 10

FUNK(NEW) Gel Pen 10

MILTON 10X Gel Pen 10

SIGMA Gel Pen 10

CG-110 Gel pen 15

ELITE Gel Pen 20

Ball +Gel
JETTA(NEW) 15
Pen

Ball +Gel
SIGMA 25
Pen

Ball +Gel
ANGEL 25
Pen

Ball +Gel
ROCK 200 25
Pen

IRIS Ball +Gel 25

 Pen

Retractable
REVA(NEW) 30
+Ball Pen

Ball +Gel
BOSS 35
Pen

6) FLAIR

TYPE MODEL PRICE

Ball
Pen FX 5
Max 5
FX Dark 5
Easy Click 5
Jackpot 5
Marathon 10
 Striker 10
Liqui touch 10

Ion 10
Digital 15
Sunn(4 color) 20
High way 40
Spectrum 70

Gel Pen Hydra 5

Phinix 5
Matrix 10
Fashion Gel 10
Glitter 10

WIN ITALIA

Bee Gel 5 Trivo 3

Guide 10 Club Gel 5
Titium 30 Petra 5
Olivia 40 Stella 5
Dezire 40 Weather Flow 10
Tivoli 10
Docker Safari 30
Revo 125

LEXI ROTOMAC

Maxima 5
Ball Pen Get speed 5 Boss Gel 5
5N 5 Forever 12
Fine
Point 10

MONTEX

Mega Top 10