INTRODUCTION TO INDUSTRY :

Introduction :
Type: Public (BSE:ITC)

Founded: 24 August 1910Radha Bazaar Lane, Kolkata, India Headquarters: Kolkata, India Key people: Yogesh Chander Deveshwar, Chairman K. Vaidyanath, Director,Partho Chatterjee, CFO Industry: Tobacco, foods, hotels, stationery, greeting cards Products: Cigarettes, packaged food, hotels, apparel Employees: over25,000 (2009) Website: http://www.itcportal.com/ Forbes Global 2000 List: 987 rank (2009) Sales ($ billion): 3.65 Profits($ billion): 0.79 Assets($ billion): 4.43 Market Value($ billion): 13.48

Incorporated on 24 August 1910 as the Imperial Tobacco Company of India Limited, the company's name was changed to ITC Limited in 1974. This company is rated among the 'World's Best Big Companies' by Forbes magazine. ITC ranks third on all major profit parameters among India's private sector corporations. ITC employs over 20,000 people at more than 60 locations across India. ITC is one of India's foremost private sector companies with a market capitalization of over US $ 13 billion and a turnover of US $ 3.5 billion.

ITC's unique e-Choupal initiative began in 2000. ITC e-Choupal, the largest Internetbased intervention in rural India, empowers over 3.5 million farmers in 35,000 villages. It enables them to readily access crop-specific, customized information through vernacular websites. The service also creates a two-way direct marketing channel for rural India, eliminating wasteful intermediation and multiple handling. Business ITC has a diversified presence in cigarettes, hotels, paperboards and specialty papers, packaging, agri-business, packaged foods and confectionery, branded apparel and greeting cards. ITC's agri-business is one of India's largest exporters of agricultural products. A wholly-owned subsidiary, ITC InfoTech India Limited, provides end-to-end IT solutions, including e-enabled services and business process outsourcing. About ITC Foods The 'Foods Division' is the most recent diversification of the ITC Group. ITC's decision to enter the foods business is part of a strategic decision to develop new product lines by synergizing its core competencies in building brands, understanding the Indian consumer's requirements and its strong distribution network as well as its established culinary expertise.

THE ITC VISION : 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 Companys stakeholders THE ITC MISSION : To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value

ITC COMPANY PROFILE

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 practises 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 $ 2.4 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 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 $ 2.4 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 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 $ 2.4 billion in the last decade). The Compa ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 19 billion* and a turnover of over US $ 5.1 Billion. ITC is rated among the World's Best Big Companies, Asia's 'Fob 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining

market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.

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 hotelier. 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 25,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a

globalizing environment to consistently reward more than 3,64,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This overarching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation. For the Shareholder."

BOARD OF DIRECTORS :
CHAIRMAN: Y.C. DEVESHWAR EXECUTIVE DIRECTORS S.S.H.REHMAN ANUP SINGH K.VAIDYANATH NON EXECUTIVE DIRECTORS J.P.DALY C.R.GREEN S.H.KHAN S.B.MATHUR D.K.MEHROTRA P.B.RAMANUJAM B.SEN RAM.S.TERNEJA B.VIJYARAGHVAN

Company History ITC :

1910 - On 24th August the Company was incorporated as a Private Limited Company under the name, Imperial Tobacco Co. of India Ltd. The Company manufacture and distribute cigarettes and smoking tobaccos and specialty papers including cigarette tissue papers (Sole manufacturer in the country). Other activities include tobacco leaf processing, printing and packaging, hotels, food and exports. 1953 - The Company acquired the manufacturing business of Tobacco Manufacturers (India) Ltd., and the Complementary Lithographic printing business of Printers (India) Ltd. 1954 - The Company was converted into a Public Limited Company on27th October. 1970 - The name of the Company was changed from the Imperial Tobacco Co. of India Ltd., 1972 - On October Company entered into hotel business. 1973 - Company received the approval of Govt. for setting up three processing plants. 1974 - On 1st April name again changed to I T C Ltd. to India Tobacco Co. Ltd., in May.

1975 - ITC Ltd Purchased the net asset in India of India Leaf Tobacco Development Co. Ltd. 1976 - During December some foreign shareholders offered a total of38,00,000 No. of equity shares of Rs 10 each at a premium of Rs5.00 for sale to reduce the foreign equity holding of the Company to 40%. 1978 - 37,90,000 Bonus shares issued in prop. 1:5. 1979 - The name of the Company's chain of hotels was changed fromWelcom Hotels to Welcomgroup. 1980 - 45,48,000 Bonus shares issued in prop. 1:5. 1983 - A new Company under the name Gujarat Hotels was incorporatedunder a joint venture agreement signed between the Company andGujarat Industrial Investment Corporation. This Co. had set upa 144-room hotel at Vadodara known as Welcomegroup Vadodara. 1984 - 29,38,050 shares allotted to bondholders in exchange of accrued interest on 1.7.1984. 1985 - 29,42,060 Shares allotted to bondholders in exchange of accrued interest.

1986 - ITC Filtrona Ltd. a 50:50 joint venture Company promoted by the Company and Filtrona International Ltd. UK. The Company manufactures high technology filters for the cigarette industry. 1987 - New brands viz., Wills Flake Premium Filter and Scissors Filter were introduced. Long-term agreements were entered into with the unions of factories located at Calcutta, Saharanpur and Munger. 1988 - In May the company formed a new division called Agribusiness Division for carrying out research and development on production and distribution of high yielding cultivars with emphasis on oilseeds, marketing of edible oils in bulk and consumer packs andexport of agricultural produce. - Different varities of oilseeds under the brand name of ADARSH and cooking oil under SUNDROP were launched. 1989 - 331,68,110 Bonus Equity shares issued in prop. 1:1. 1990 - Refined mustard oil under the brand name REAL GOLD was introduced in the market.

1991 - Company proposed to enter and agreement with National Trading& Developing Establishment, Abu Dhabi for export of safety matches to UAE on commission at the rate of 3% on FOB value of each transaction.

1992 - Since January there was labour unrest at Tribeni Tissues paper mill which led to a lockout at the mill with effect from 27thMay. - On 8th April, ITC Global Holdings Pvt. Ltd was incorporated in Singapore a wholly owned trading subsidiary of the Company.

1993 - The Company successfully launched Hero brand Cigarettes.

- Two new brands viz., `Classic Milds' and `Hero' were launched at the premium and small-length ends respectively. 1994

- 121,318,177 bonus equity shares issued in propn. 1:1, 2,85,550 No. of equity shares issued on conversion of 1,85,450 warrants. - Company introduced scissors standard.

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1995

- Company introduced capstan Menthol filter, capstan standard and Bristo standard and re-designed Gold Flake Kings and Berkley Filter. Further, Gold Flake Lights in King size was introduced into test markets. - The consideration of the edible oil business could not be completed due to adverse business conditions experienced by the ITC Agro-Tech Ltd.

1996 - The Company has launched `Classic Ultra Milds' and `Wills Natural Lights' brands during the year.

1997 - ITC Classic Finance Ltd. was amalgamated with ICICI Ltd.

- City based Indian Tobacco Company workers will go on a day-long strike on December 26, in protest against the management's move to retrench 416 workmen from its cigarette manufacturing unit. 1998 - ITC Ltd has undertaken a comprehensive exercise to restructure all its whollyowned subsidiaries to align them with the four thrust areas viz., tobacco, hotels, paper and paperboards and printing and packaging. 1999 - The Anaparti factory of ITC Ltd -- ILTD division, received the Rajiv Gandhi National Quality award for 1995.

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2000 - The Company has launched a project e-Choupal in Bhopal to Web-enable farmers to make a beginning in agricultural e-trade. - The IT division has entered into agreements with Compaq and expand the IT business.

- Tobacco Company ITC launched a website, billed as `one stop terminus' for international customers of agricultural commodities. The website, ww.itcibd.com, will provide information on trading of key commodities. 2002 - ITC Ltd has informed that the Board of Directors, appointed Mr. J.B. Stevens as an Additional Non-Executive Director of the Company and the Board accepted the resignation of Mr. A.A. R. Rodrigures. 2002

- ITC, Tobacco major, has launched Aashirvaad atta making its foray into Indian atta market. - ITC's greetings cards business and Maple Leaf have entered into Joint Venture where Maple Leaf will exclusively manufacture pop-up cards for ITC.

2003 -ITC on April 04, introduced salt in the staple segment, as part of its efforts to clock a Rs 500 crore sales in five years. Salt is the second offering from ITC Foods' staple business in the past 10 months, under the brand name of 'Aashirvaad'.

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2004

-ITC Food launches a range of 'cooking pastes' under its ready-to-eat gourmet cuisine brand Kitchens of India and ready meal Aashirwad brand

-ITC unveils Sunfeast biscuits in Chennai - ITC ties up with Israeli firm for e-choupals

2005 - ITC Ltd becomes one of the very few companies in India to obtain the coveted Quality Management System certification ISO 9001:2000 for investor servicing. -ITC unveils new `5-in-1' agarbattis -ITC unveils `Expressions Regalia' -ITC e-Choupal gets Development Gateway Award

2006 -ITC forges alliance with Tilda for DNA-tested basmati -ITC ties-up with Marubeni for food biz 2007 - Itc Ltd. has informed that the Board of Directors of the Company at the meeting held on July 27, 2007, appointed : (i) Mr. A. Baijal, IAS (Retd.), as an Additional Director of the Company, representating the Specified Undertaking of the Unit Trust of India (SUUTI),

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INTRODUCTION TO THE ORGANISATION:

FAST MOVING CONSUMER GOODS (FMCG) Definition:

WHAT IS FMCG ? FMCG INDUSTRY (Fast Moving Consumer Goods)0r CPG (Consumer Packaged goods) ARE THOSE CONSUMABLES WHICH ARE NORMALLY CONSUMED BY THE COSUMERS AT A REGULAR INTERVAL FMCGs or fast moving consumer goods are the products which are frequently purchased by consumers including toiletries, soaps, cosmetics, teeth cleaning products, shaving products, detergents, other non-durables such as glassware, bulbs, batteries, paper products ,plastic goods etc. Our collection of market research reports on FMCGs provide insights into product and market trends, analyses, opportunities, projections, sales, and marketing strategies. Fast moving consumer goods (FMCG): a term describing frequently purchased consumer goods, eg. food and toiletries. Fast Moving Consumer Goods a term used in reference to frequently purchased consumer goods, such as foodstuffs, toiletries, etc Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), are products that are sold quickly at relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large.

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ITC: Organisational Profile :

ITC Limited is one of India's foremost private sector companies with a market capitalisation in excess of US $ 16 billion and a turnover of more than US $ 3.5 billion. ITC ranks third in pre-tax profits among India's private sector corporations. ITC is ranked among the World's Best Big Companies and Asia's 'Fabulous 50' by Forbes magazine, among India's Most Respected Companies by Business World magazine and among India's Most Valuable Companies by Business Today magazine. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri Business, Packaged Foods & Confectionery, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards & Stationery. The Company's successful strategy of creating multiple drivers of growth leveraging the diverse competencies residing in its portfolio of businesses is evident in its impressive track record of growth in the last decade and its strong debt-free balance sheet.

Strategy of Organisation to manage diversity of Portfolio :

Board of Directors :

Comprising executive (4) and non-executive directors (8) Strategic supervision

Corporate Management Committee : Comprising executive directors and senior managers Strategic management

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CEO & Divisional Management Committee :

Executive management

Corporate Strategies :

Sustain multiple drivers of growth, matching internal capabilities with emerging

market opportunities

Pursue World class competitiveness in all businesses and across the entire
value chain

Best-in-class in terms of:

Internal Vitality Market Standing Profitability

Strategy

of Organisation and Governance processes geared to manage multiple businesses

Blend core competencies and leverage ITC umbrella strengths to create new
avenues of growth

FMCG business initiatives :

Concurrently, ITCs IT subsidiary assists in web-enabling business processes

CRM initiatives ERP transaction processing systems

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SCM including the e-choupal capability

hosted on ITCs Virtual Private Network ITC awarded the best IT user in FMCG category by Nasscom

BRANCH LEVEL HIRERARCHY :

HR DEPARTMENT

BRANCH MANAGER

Assist. B.M. Assist. B.M. (Cigerattes) Assist. B.M. (Food) (PAMS)

Area Manager

Area Manager

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Finance Manager

Area Executive

Area Executive

Future Positioning of ITC A leading FMCG player in India :

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Future Positioning of ITC

A leading FMCG player in India
VPN providing SCM, ERP & CRM capability

M A R K E T S

F A R M E R S

e-choupal rural two-way fulfillment capability Cigarette Trade Marketing capability

Expanded FMCG distribution capability

Brande d Foods

Lifestyl e retailin g

Greetin g cards/s tatione ry

Matches & Agarbat tis

A basis for strategic partnerships with other FMCG brand owners

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Limitations :

Assumes market growth rate. A firm may grow the market. A Dog may be helping other products. High market share/Growth is not the only success factor. Linkage between market share and profitability is questionable.

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The BCG Matrix for ITC Ltd.

Stars Hotels Paperboards Packaging. Agri business. Cows FMCG-Cigarettes ? FMCG- Others

Dogs Maybe ITC Infotech.

ITC- Foods Division :

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The Foods Division is today represented in 4 categories in the market. These are: - Ready To Eat Foods - Staples - Confectionery - Snack Foods ITC Limited Foods Division has a notable presence in the market with brands like 'Aashirvaad', 'Sunfeast', 'Kitchens of India', 'Minto' and 'Candyman.' 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 has stood for quality products for over 90 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 Division 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 Bangalore.

Leadership in the Foods business requires a keen understanding of the supply chain for agricultural produce. ITC has over the last 90 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 longstanding relationship is being leveraged in sourcing best quality agricultural produce for ITC's Foods Division.

Bingo(Snacks):

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The launch of Bingo! in March 2007 marked ITC's foray into the fast growing branded snack foods segment. Bingos portfolio includes an array of products in both Potato Chips & Finger Snacks segment. Bingo! is positioned as a youthful and innovative snack, offering the consumers a choice of flavours that are fast becoming popular. The Potato Chips offerings comprise the ever-popular Salted, Masala and Tomato flavours, as well as some innovative variants inspired by the snacking habits of different parts of the country like Chatkila Nimbu Achaar. Bingo! International Cream & Onion is the brands latest addition to its existing unique and exciting range. Keeping in sync with the Bingo! philosophy, this variant brings with it a unique combination of cheese, cream and spring onions, giving it a truly international flavour. The Finger Snacks segment, the innovative 'khakra inspired' Mad Angles has become an instant hit among consumers and is available in 3 flavours - Tomato Mischief, Chilli Dhamaka and Achaari Masti. Finger Snack Hatke Jhatke, appropriately shaped like a wave, takes Bingo!s philosophy of combinations forward with two exciting flavours - Funky Masala & Tomato Twist.

SUN-FEAST (BISCUITS) :

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Sun-feast Golden Bakery:

Sun-feast Golden Bakery is a premium cookie on an innovative and differentiated platform. Launched nationally in March 2008, these cookies are made from the recipes crafted by the master bakers of ITC Hotels and are slowly baked in the traditional way till they are golden brown and develop the crispy broken crust texture. The Sun-feast Golden Bakery cookies are available in three distinct flavours Butter-Nut, Butterscotch and Choco-Nut cookies. These products are designed to give consumers a rich & truly indulgent experience.

Sun-feast Dark Fantasy:

Inspired by the Master Chefs of ITC hotels, it is the richest of chocolate vanilla biscuits. These biscuits are created using carefully chosen premium ingredients for a sensory experience unlike any other. Dark Fantasy is more than a biscuit, its a luxurious mix of aromatic cocoa and vanilla.

Sun feast Dream Cream:

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A truly scrumptious range of cream biscuits that have become an instant hit with children. ITCs chefs have put their legendary skills into these biscuits to deliver truly tasty cream biscuits. Special Flavor Crystals in Strawberry and Pineapple cream biscuits keep the creamy flavor linger on.

Strawberry Cream :

The first of its kind cream biscuit with special strawberry flavor crystals that will keep the creamy flavor linger on.

OrangeCream

Experience a tangy twist in biscuits with every Orange cream.

Butterscotch Cream

Another first, the taste of ice-cream in cream biscuits.

Mango Cream :

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A special summer flavor cream biscuits for all those who love the king of fruits.

Elaichi Cream :

Taste

the

queen

of

spices

in

cream

biscuits.

Sun feast Glucose ;

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

Sun-feast Snacky ;

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

Sun-feast sweet 'n salt :

These thin and crisp biscuits come with a distinctive sundry taste, that of salt and sweetness. A bite into one of these one keeps wondering about its taste!

Sun-feast Nice ;

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

Sunfeast Benne Vita Flaxseed Biscuits :

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

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

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

Sun-feast Pasta :

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The Sun feast product portfolio was expanded in early 2005 to include healthy snacking options as well. Sun-feast Pasta Treat, a whole wheat based instant pasta was introduced as a healthy snacking option for children and young adults. After the tremendous success of the 4 initial flavours, (Masala, Tomato Cheese, Cheese and Sour Cream), the instant Pasta range has been extended with three new exciting flavours - Pizza style, Chicken and Tangy Tomato.

SUN-FEAST: SPREADING THE SMILE Advertising Strategies ITC relies on three core competencies 1. The depth of distribution 2. Its brand building capabilities. 3. The ability of Quality outsourcing.

Sunfeast has been a success because of these three competencies of ITC. Sun-feast was launched in 2003 was one of the diversification forays of ITC which wanted to establish itself

as a serious FMCG player from its position of Tobacco products leader. ITC had the advantage of the well entrenched distribution setup which is matched only by HLL.

To establish a brand in this tough market was never easy. Sunfeast using heavy promotion and careful brand building have already garnered 10% market share in this market. Sunfeast is positioned as an exciting brand. This platform is supported by a series product launches. Since Biscuits are convenience goods, new tastes and new products are essential to built excitement in the market. Sunfeast have maintained continuous series of new launches like Milky Magic, Coconut, strawberry,

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pineapple cream etc. Recently Sunfeast launched a product for the premium segment named Dark Fantasy" with chocolate flavour and cool advertisements.

Sunfeast is also trying to garner more share in the Marie category which is estimated to be around 600 crore. It launched the Marie with different flavours that has enabled it to gain a strong foothold in that category. To expand the brand in to the snack category Sunfeast has launched Pasta Treat which talks of a healthy snacking option for kids. Sunfeast also uses lot of below the line promotions for brand building. It sponsors Sunfeast Open, a recent initiative aiming at the school kids by providing them an opportunity to enhance creativity through painting competitions, Hara Bano campaign which set a world record in planting maximum number of saplings etc. The constant product launches and careful promotions have enabled Sunfeast to move to the top league in the biscuit market with in a span of 3 years.

Confectionery ::

ITC currently has two brands in the confectionery segment - 'mint-o' and 'Candyman'. 'mint-o' was acquired by ITC from Candico in March 2002. ITC re-launched the compressed mint offering, across all major markets in India, with new and improved product and packaging. Available in the regular mint flavor with added blue specks to enhance consumer experience, mint-o is also offered in innovative 'Orange mint' and 'Lemon mint' flavors. mint-o Cool Blue - a single mint in a pillow-pack was launched In November 2007. 'mint-o' is available in 3 sizes rolls of 20 and 6 and singles, capturing the international essence of youthful cool.

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ITC launched 'mint-o Fresh' in October 2004. An active mint deposited candy, mint-o Fresh is available in two refreshing mint flavors mint-o Fresh Eucalyptus and mint-o fresh Cool Green. Its launch extended the footprint of the 'mint-o' brand in line with the strategy of adding excitement and contributing to the growth of the confectionery category. 'mint-o Fresh' is especially targeted at the adult consumer creating a basket of mint-based products across price points. ITC launched the 'Candyman' range of confectioneries in August 2002. Led by the 'Candyman Fruitee Fun' range of assorted fruit flavors ('Wild Banana', 'Pineapple Punch', 'Orange Josh' and 'Mango Delite'), the 'Candy man' portfolio now includes deposited candy products like 'Candy man Butterscotch Licks' and 'Candyman clairs' (Choco flavored as well as Vanilla Cream centre inside a Butterscotch outer shell). The coffee toffee segment also saw the successful launch of 'Candyman Cofitino' in November 2005. The brand was further strengthened with the launch of 'Candyman Natkhat Mango' and

'Candyman Maha Mango'. In line with the strategy to provide innovative flavors to the consumers, Candyman Mango Licks was launched in June 2007, Candyman Natkhat Gowawa in October 2007, Candyman Lacto creme centre in June 2008 and Candyman Toffichoo Strawberry in early 2009. It is another unique addition to the Candyman portfolio, as the only Lacto with a rich milk paste centre filling. The 'Candyman' range of confectionery is targeted at fun-filled, naughty kids who seek a delightful candy experience through a range of candy types and flavors.

ITC Foods expands Mint-O Fresh portfolio :

ITC Limited today announced the expansion of the Mint-O Fresh portfolio with the launch of Mint-O Fresh Cool Green. The new variant Mint-O Fresh Cool Green will provide further thrust to the formidable presence that Mint-O Fresh has established

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in the adult mint category. The brand has also roped in the bold and confident Bollywood diva Rakhi Sawant to highlight the brand and product salience. Mint-O Fresh, the hard boiled mint candy brand from ITC Foods stands for freshness that inspires self-confidence and plays a lead role in the consumer's social interactions. The communication of Mint-O Fresh has been about breath freshness enabling the protagonist to win over his girl. The tagline "Jab Laila ko karna tha impress to majnu ne khayi mint- o fresh" has stood the test of times and is still widely known and remembered. This communication has worked well for the brand and has enabled it to gain shares in a short period of time in the face of intense competition. The brand today is a leader in its category.

Speaking on the new campaign, Ishita Tandon, Brand Manager Confectionery, ITC Ltd-Foods Division said "Adult mint confectionery is an impulse category where salience for a brand is very important. It is critical to get cut through so that the consumer remembers the brand and asks for it at the point of sale. Signing on Rakhi will help us get this cut through and improve brand salience. Also, Rakhi is bold, confident and frank and Minto Fresh has similar brand values. Thus there is a good fit with Minto fresh. Moreover, the brand statement has been breath freshness and the communication has been about the protagonist trying to impress his girl. What better than impressing Rakhi Sawant."While maintaining the inherent property of freshness and confidence through mint o fresh the new communication intends to present the brand promise in another fresh and exciting manner. The use of street parlance dramatized through a protagonist trying to impress his girl is set to enhance the brand connect with its target audience.

About Mint-O Fresh:

The .50p Cough Lozenges segment, which accounts for 10.3% of the total confectionery market (value terms) is one of the fast growing segments with a growth

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rate of 32% (3 year CAGR, value terms). The segment has gained tremendous popularity over the past 3 years. The category of Cough Lozenges is characterized by well entrenched brands in the market. ITC Foods entered the fast growing Cough Lozenge segment with the launch of Mint-O Fresh in 2004. Currently available in Eucalyptus and Clove flavours, Mint-O Fresh has garnered a significant market share in the category and top of mind recall on the basis of its distinctive product offerings, immense retail reach and clutter-breaking communication. It is today the No. 1 brand in the 50 p cough lozenges segment.

STAPLES (Aashirvaad Atta) :

ITC entered the branded Atta market with the launch of Aashirvaad Atta in Jaipur and Chandigarh on 26th May 2002. The product is now available all over India. In less than four years of its launch Aashirvaad atta has become the leader in its category with a 54% market share. Aashirvaad promises the Indian housewife the joy of providing her family with the most delightful home-made rotis, made from the finest quality atta. ITC uses the sourcing strength of its e-Choupals to buy wheat directly from the farmers to deliver happiness to the Indian consumer Khushiyaan Chun Chun ke (Happiness handpicked). Aashirvaad is made from finest quality wheat that ITC has the unique capability to source through its e-Choupal network. Premium quality atta, made from

33

100% MP 'sharbati' wheat is also available as Aashirvaad Select Atta . The wheat for Aashirvaad MP Blend Chakki Atta comes from the plush, fertile soil of Madhya Pradesh and then blended using the traditional 'chakki-grinding' method to give the superior, discerning taste. ITC Foods also aims to delight the consumer through superior and innovative packaging. The Aashirvaad package is PET Poly, with the design showcasing the farming process undertaken in the rural heartland of India in the form of a Madhubani painting. Aashirvaad Select Atta (5 kg pack) was awarded the World Star Award for Excellence in Packaging in the Consumer Pack Category. This is one of the most prestigious awards in the world for Packaging.

Aashirvaad Salt :

ITC launched branded packaged salt under the brand name Aashirvaad Salt on 26th March, 2003. The product is available in grocery stores around the country.

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Spices ::

ITC forayed into the branded spices market with the launch of Aashirvaad Spices in Northern India in May 2005. The offering currently consists of Chilli, Turmeric and Coriander powder in SKUs of 50g, 100g, 200g and 500g each. Launched in 2006, Aashirvaad Spices have spread to a large consumer base and have emerged as a major player in basic spices in most regional markets.

Aashirvaad Pickle Mirch Powder

In March 2008, Aashirvaad added a unique variant to its Spices range with the launch of Pickle Mirch Powder in Andhra Pradesh, a state known for its variety of spicy pickles. The Pickle Mirch Powder uses the finest of Warangal Bamboo Chillies, which are sourced directly from the farmers and selected by experts to ensure the right aroma, pungency and colour.

Instant Mixes ::

This range, launched in March '06, includes Gulab Jamun, Rava Idli, Rice Idli, Rice Dosa, Khaman Dhokla, Rasmalai and Vada mix. Aashirvaad Instant Mixes promise the discerning Indian homemaker perfect tasting dishes, consistently. The Rava idli

35

Mix is available in 500g pack and rest of the products are available in 200g packs. The latest entrants to the portfolio include Rasmalai and Vada mixes. Rasmalai mix is available in 126g pack and Vada mix in 200g pack.

Aashirvaad Multi-purpose Cooking Paste :

The Multi-Purpose Cooking paste is the latest offering from the Aashirvaad brand. The Aashirvaad Multi-Purpose cooking paste is positioned as a kitchen aide. The product, Bhuna hua taiyaar masala, is a fried paste of onions, tomatoes, ginger and garlic shallow fried in refined sunflower oil. It is a basic paste used for most north Indian dishes. It is suitable for all tomatobased dishes. The Aashirvaad Multi-Purpose Cooking paste is available in Delhi, Chennai, Hyderabad, Bengaluru, Kolkata, Ahmedabad, Mumbai and Pune at leading grocery outlets. It is available in easy to use pouch size of 100g and 280g bottle.

Ready To Eat Products from Kitchens of India ::

Keeping alive long forgotten culinary traditions, Kitchens of India presents its range of ready-to-eat cuisines. Each one of these legendary delicacies has been created by the Master Chefs of ITC Hotels, following rare, closely guarded recipes, handed down through the ages, from one generation to the next. These delicacies are now available in imported 4-layer retort pouches that keep them fresh for as long as 24 months (Vegetarian) & 12 months (Non Vegetarian and Desserts) from the date of packaging.

Bukhara :

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Bukhara, a village in Uzbekistan, was a meeting place for the traders from Asia and Europe. It was also a spot on the fabled Silk Route, a passage commonly used by traders, scholars and nomads. It was on this route that the unique Bukhara style of cooking was born.

The Master Chefs of ITC Hotels have whipped up the delectable bite into history with this cuisine from the North-West Frontier Province with a masterpiece like Dal Bukhara.

Dal Bukhara :

Dal Bukhara is an exquisite culinary treat made from Whole Black Lentils simmered with prized Indian Spices over a coal fire, for long hours on end.

Dum Pukht :

The art of Dum cooking (cooked in its own juices) traces its origin to the times of the Nawabs of Awadh who ruled the Northern Provinces of India during the 18th century. Kitchens of

37

India has currently introduced Mirch Ka Salan in this range.

Mirch Ka Salan :

An extravagant delicacy made from succulent green chillies, delicately cooked in a thick gravy of roasted peanuts, almonds and sesame seeds.

Mughlai Paneer :

Fresh cubes of Paneer prepared with khus-khus, ground watermelon seeds and fine onion paste, spiced with coriander leaves and cardamom powder.

Dakshin : This cuisine reflects the tradition and culture of the southern Indian peninsula. Kitchens of India offers you Chicken Chettinad and Chicken Stew:

Chicken Chettinad :

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Succulent chunks of tender chicken in a dark, spicy paste of curry leaves and freshly ground pepper. Showcasing the distinctive tastes and fragrances of the South.

Malabari Chicken Stew :

Tender nuggets of chicken in a mild, coconut gravy.

Gharana :
A pan-Indian cuisine specially created by ITCs Hotels Master Chefs.

Paneer Darbari :
Soft, fresh and juicy cubes of cottage cheese simmered in an aromatic tomato gravy to create an unforgettable delicacy.

Chicken Darbari :

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A superb blend of juicy and tender chicken chunks in an aromatic tomato gravy, laced with butter.

Murgh Methi :
Discover the delights of Nawabi cuisine in every serving of Murgh Methi. Tender chunks of chicken, spiced mildly, and simmered for long hours in a gravy of green coriander and fenugreek.

Paneer Malai :

Fresh chunks of Paneer, sauted with onions and green peppers, immersed in a creamy tomato sauce.

Kitchens of India Curry Pastes ::

A special blend of handpicked spices, created by the Master Chefs of Kitchens of India, in accordance with original, traditional recipes. Just add fresh ingredients, and cook. These are ready made pastes and there is no need to add oil, salt or spices. Its truly the most deliciously authentic way to recreate your favourite dishes. These pastes by themselves are fully vegetarian.

Butter Chicken Curry Paste:

A rich, mildly spiced gravy, that follows the original, traditional Butter Chicken Curry recipe. Just add succulent nuggets of chicken and cook..

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Hyderabadi Biryani Paste :

A rich coconut yogurt gravy, in accordance with the original, traditional Hyderabadi Biryani recipe. Just add long grained basmati rice, tender pieces of chicken or lamb and cook..

Fish Curry Paste :

A rich, mildly spiced gravy, according to the original Fish Curry recipe. Just add fresh slices of fishand cook.

Vegetable Biryani Paste :

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A rich, mildly spiced gravy, faithful to the original, traditional Vegetable Biryani recipe. Just add long grained basmati rice, garden-fresh vegetables and cook.

Chicken Curry Paste :

A thick, tomato-onion gravy, that follows the original, traditional Chicken Curry recipe. Just add succulent nuggets of chicken and cook..

Mutton Curry Paste :

A rich, mildly spiced, aromatic gravy, in keeping with the original, traditional Mutton Curry recipe. Just add tender pieces of lamb and cook.

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Kadai Chicken Curry Paste :

A rich, mildly spiced gravy, specially blended by the Master Chefs of ITC Hotels following a rare, traditional recipe. Just add chicken & cook.

Dum Aloo Curry Paste :

A rich, exotic spiced Kashmiri gravy, specially blended by the Master Chefs of ITC Hotels following a rare, traditional recipe. Just add potatoes & cook.

Mutton Kolhapuri Curry Paste :

A rich, exotic spiced gravy, specially blended by the Master Chefs of ITC Hotels following a rare, traditional recipe. Just add mutton & cook.

Goan Fish Curry Paste :

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A rich, coconut based mildly spiced Goan gravy, specially blended by the Master Chefs of ITC Hotels following a rare, traditional recipe. Just add fish & cook.

Kitchens of India Conserves ::

Kitchens of India Fruit & Spice Conserves have been skillfully b flavours by combining the succulent chunks of fresh fruit with an expert selection of exotic spices. A truly irresistible treat. lended by ITCs Master Chefs to create unique, delectable

Strawberry & Mint Conserve :

This exotic Fruit & Spice Conserve merges the tangy flavours of fresh strawberries with a pure, refreshing touch of mint. An ineffably enjoyable experience.

Pineapple & Green Pepper Conserve :

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This exotic Fruit & Spice Conserve adds the pleasant and moderate pungency of Kerala green pepper to the sweetness of fresh, juicy pineapples. An incredible combination.

Apple & Cinnamon :

This exotic Fruit & Spice Conserve skillfully combines the flavours of fresh Himachal apples with the compelling piquancy of cinnamon. A treat for the adventurous.

Mango & Saffron Conserve :

This exotic Fruit & Spice Conserve is a special jam that boasts of all the sweetness of ripe Alphonso Mangoes imbued with the exotic essence of hand picked Kashmiri Saffron.

Kitchens of India Chutneys ::

Kitchens of India Chutneys have been created by ITCs Master Chefs. Made from the finest ingredients and spices, this collection of popular mealtime accompaniments, is truly a feast for the senses.

Shredded Mango Chutney :

Finely shredded raw mango, in a tangy, spiced, delicious thick syrup. An authentic rich accompaniment with any meal.

Tamarind & Date Chutney :

Delicious Dates in a delightful tangy tamarind base. A piquant dip for fried snacks.

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Mango & Jeera Chutney :

Cubes of raw mango in a thick, aromatic syrup flavoured with cumin seeds.

Mango & Garlic Chutney :

Chunks of raw mango mixed with slivers of fresh garlic. A delicious accompaniment with any meal.

Carrot & Black Pepper Chutney :

Tangy chutney made up of choice carrot slices flavoured with aniseed and black pepper.

Papaya & Raisin Chutney:

This sweet chutney is made from Papaya slices and papaya pulp with raisins, kalonji and aniseeds.

Hot Mango Chutney:

Hot and tangy chutney consists of pieces and pulp of mango with chilli slices and chilli flakes.

Tomato Chilli Chutney:

This hot and spicy chutney consists of pieces and pulp of tomato, mixed with ground garlic, amchur and green chilli paste.

Kitchens of India Biryanis ::

By far, one of the most popular delights from the Kitchens of India spectrum, these have been masterfully blended by the Master Chefs following ancient and authentic recipes. These absolutely irresistible dishes have been skilfully cooked under

46

precision and a knack of adding just the right amount of fragrant spices in just the right proportions, so that you can savour the Biryanis exactly as they were meant to be.

Noormahal Biryani :
Minced tender chicken koftas slow-cooked with saffron flavoured BasmatiRice. From

the Royal kitchens of India

Bohri Biryani :
Delicately spiced chicken layered in Basmati Rice, enhanced with exotic dry fruits. A feast fit for the kings.

Yakhni Pulao :
Succulent chicken chunks marinated in creamy yogurt and cooked in saffron flavoured Basmati rice.

Hyderabadi Mutton Biryani :

Delicious mutton pieces cooked to perfection with cinnamon flavoured Basmati rice form this Nawabi extravaganza.

Kitchens of India Desserts ::

Kitchens of India royal, authentic Indian Desserts is the perfect way to make any occasion a celebration. A grand finale to a perfect meal. The Master Chefs of Kitchens of India bring to you a uniquely packaged range of royal desserts prepared from the finest of ingredients. Go ahead, re-live the royal experiences.

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Jodhpuri Moong Dal Halwa :

This dessert, perfected in the royal kitchens of Agra is prepared with fresh, grated petha cooked in ghee. Simmered to perfection with milk and khoya, and garnished with raisins, the distinctive flavours of this halwa make it the perfect dessert for any occasion. The Ready-To-Eat range also comprises eleven more dishes and two Combo packs. The dishes on offer currently are Rajma Masala, Navratan Korma, Dal Makhani, Aloo Mutter, Palak Paneer, Pindi Chana, Pav Bhaji, Mutter Paneer, Yellow Dal Tadka, Pongal and Gajar Ka Halwa. Rajma Masala & Basmati Rice and Yellow Dal Tadka & Basmati Rice are available in Combo packs. The unique packaging form, using a retort process, ensures that the original freshness and taste of the recipes is protected without the use of preservatives.

Cigarettes :

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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.

History of cigarettes:

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The company was founded as Wills, Watkins & Co. by Henry Overton Wills I and his partner Watkins, who opened a shop in Castle Street, Bristol in 1786. After the retirement of his partner in 1789 it became Wills & Co.. In 1826 his two sons, William Day Wills and Henry Overton Wills II took over the company and in 1830 the company took the above name. The company pioneered canteens for the workers, free medical care, sports facilities and paid holidays. Their first brand was Bristol, made at the London factory from 1871 to 1974. Three Castles and Gold Flake followed in 1878 and Woodbine ten years later. Embassy was introduced in 1914 and relaunched in 1962 with coupons. The company had factories and offices not only in Bristol, but also in Swindon, Dublin, Newcastle and Glasgow. The largest cigarette factory in Europe was opened at Hartcliffe Bristol, and was designed by Skidmore, Owings and Merrill in 1974, but closed in 1990. Now called Lake Shore, it is currently undergoing a transformation into residential apartments by Urban Splash. The large factory and warehouse buildings

remain prominent buildings in Bristol, although much of the existing land and buildings have been converted to other uses, such as The Tobacco Factory Theatre. The Newcastle factory closed in 1986 and stood derelict for over a decade, before the front of the Art Deco building - which was preserved by being Grade II listed reopened as a block of luxury apartments in 1998. (See main article: Wills Building)

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In 1901 Sir William Henry Wills et al. formed the Imperial Tobacco company from a merger of W.D. & H.O. Wills with seven other British tobacco companies. Imperial remains one of the world's largest tobacco companies. The last member of the Wills family to serve the company was Christopher, the great great grandson of H.O. Wills I. He retired as sales research manager in 1969.

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.

ITCs 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.

The Big Picture:

ITCs Agri Business Division, one of Indias largest exporters of agricultural commodities, has conceived e-Choupal as a more efficient supply chain aimed at delivering value to its customers around the world on a sustainable basis.

51

The e-Choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture, characterised by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others.

The Value Chain - Farm to Factory Gate:

e-Choupal also unshackles the potential of Indian farmer who has been trapped in a vicious cycle of low risk taking ability > low investment > low productivity > weak market orientation > low value addition > low margin > low risk taking ability. This made him and Indian agribusiness sector globally uncompetitive, despite rich & abundant natural resources. Such a market-led business model can enhance the competitiveness of Indian agriculture and trigger a virtuous cycle of higher productivity, higher incomes,

52

enlarged capacity for farmer risk management, larger investments and higher quality and productivity. Further, a growth in rural incomes will also unleash the latent demand for industrial goods so necessary for the continued growth of the Indian economy. This will create another virtuous cycle propelling the economy into a higher growth trajectory.

The Model in Action:

Appreciating the imperative of intermediaries in the Indian context, e-Choupal leverages Information Technology to virtually cluster all the value chain participants, delivering the same benefits as vertical integration does in mature agricultural economies like the USA. e-Choupal makes use of the physical transmission capabilities of current intermediaries aggregation, logistics, counter-party risk and bridge financing while disinter mediating them from the chain of information flow and market signals. With a judicious blend of click & mortar capabilities, village internet kiosks managed by farmers called sanchalaks themselves, enable the agricultural community access ready information in their local language on the weather & market prices, disseminate knowledge on scientific farm practices & risk management, facilitate the sale of farm inputs (now with embedded knowledge) and purchase farm produce from the farmers doorsteps (decision making is now information-based).

Real-time information and customised knowledge provided by e-Choupal enhance the ability of farmers to take decisions and align their farm output with market demand and secure quality & productivity. The aggregation of the demand for farm inputs from individual farmers gives them access to high quality inputs from established and reputed manufacturers at fair prices. As a direct marketing channel, virtually linked to the mandi system for price discovery, e-Choupal

53

eliminates wasteful intermediation and multiple handling. Thereby it significantly reduces transaction costs.

e-Choupal ensures world-class quality in delivering all these goods & services through several product / service specific partnerships with the leaders in the respective fields, in addition to ITCs own expertise. While the farmers benefit through enhanced farm productivity and higher farm gate prices, ITC benefits from the lower net cost of procurement (despite offering better prices to the farmer) having eliminated costs in the supply chain that do not add value.

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RESEARCH METHODOLOGY
Means of research methods

No method known to man can entirely eliminate uncertainty. But scientific method more than any other procedure can minimize those elements of uncertainty which result form lack of information. By so doing, it reduces the danger of making a wrong choice between alternative courses of action.

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When we set out to research something it is imperative that our approach is logical, accurate and precise. While no research is perfect, good research is that which is done more scientifically. This leads us towards examining what is Scientific Research or Inquiry and what makes research more scientific.

Definition
While the individual man is an insoluble puzzle, in the aggregate he becomes a mathematical certainty. You can for example never foretell what any one man will do but you can say with precision what an average number will be up to . Individuals vary but percentages remain constant. --Sir Arthur Conan Doyle I do not want to be right, I only want to be told if I am wrong. Albert Einstein I have no special tolent. I am only passionately curious. Albert Einstein

Purpose of research in management

The purpose of research in management is, To find answers to questions. Explore and understand behavior and social life. Increase the accuracy of results.

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Thus, the research process in management consists of several closely related interdependent activities where the first step determines the last step and yet no sequence may be rigidly adhered to. The understanding of and familiarity with scientific research provides a tool for the manager who can use it for taking better and more accurate decisions by interpreting the information he has, in scientific manner. more

3.1

TITLE OF THE STUDY

SALES AND DISTRIBUTION

Meaning and Definition : Sales management is a sub-system of marketing management According to American Marketing Association Sales management meant the planning, direction and control of personal selling, including, recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks apply to personal sales force.

Objectics of sales management : Establishing the distributionset-up Maximization of sales Maximization of profits Return of equity involved

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To project continuous growth of the enterprise

Problem of sales management Designing and managing salesforce Salesforce authority Target-setting Sales forecasting

Distribution management : Distribution of goods and services plays a an important role in the sales system. The Distribution system gives strength to the company by helping to increase the reach of the product to various parts of the region, country or even in foreign markets. What are Distribution objective? For a product market, they are defined in terms of availability of the product.

3.2

DURATION OF THE PROJECT

Summer training was started on 18th May to 30 th July 2009 under the ITC LTD. The duration of project study time was 44 days.

During the study I have done E.D.S. (Every distributor survey) and then collect data from DHOLPUR city and DHOLPUR Sub region as like.

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3.3

OBJECTIVE OF THE STUDY

1. Sales & Distribution Objectives and Strategies

The Key S &D Objectives: the convenience channel and ISS enable To become the Benchmark Supplier in the Grocery channel. To gain primacy in our brands presence in the HORECA channel To build and strengthen our S&D infrastructure in the Rural markets to grow our business there. To build an excellent Sales & distribution capability in Key Accounts To significantly enhance upon our position as Benchmark Supplier in

3.4

TYPE OF RESEARCH

The research design is exploratory or qualitative in nature. The main objective of the research is to find out the impact of sales promotional activities on consumers, retailers and total sales. Thus to evaluate this consumer performance perception and position of the brand in the market is necessary. In light of these evidences some effective promotional strategy can be evolved for the brand. It is only through a

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qualitative research that various findings are evaluated and new relevant relationship is developed

3.5 SAMPLING SIZE AND METHOD OF SELECTING SAMPLE

The selection of appropriate methodology for doing research is very important. It must be in accordance to the topic of the research. The topic of this study is SALES AND DISTRIBUTION The duration of my training was Six weeks and accordingly I planned my work. I covered many retailers, which comes under my given particular area. Initially, before starting my work on the field, I spent two days in the office where I learnt about the mode of functioning of market survey. The source of data collection for the project work was to conduct an extensive survey in the target area. This survey was called as Every Dealer Survey [E.D.S.]. It was done at retail outlets that sell ashrivad aata,sunfeast biscuit,bingo chips in the market. A structured format [E.D.S. Format] was developed and filled during the survey while interacting face-to-face with the retailers. On the basis of response recovered from the retailers, the analysis and interpretation is done to achieve the objective of the study

Sample Size: Total 420 retailers were contracted and filled the questionnaire form out of these 20 were rejected due to incomplete, conflicting answer and non- recovery. The final sample size was of 400. Sample Area :

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Dholpur City Station Road, Jagan Tiraha, Hardev Nagar, Old City, Modi Tiraha, Dhoolkot Road, Santar Road, Gulab Bag Chauraha, Jagadish Tiraha, Bus Depot. Particular Dholpur sub-region Bari, Rajakhera, Saipaun, Maniya

3.6

SCOPE OF STUDY

The study on the topic sales and distribution has been done for the ITC Ltd. as the part of the summer training project in the various areas of DHOLPUR city Station Road, Lal bazaar, Bus stand , Dhoolkot road, Santar road. Every person tries to do the work in the best possible way, but yet he/she faces certain difficulties. Since the survey had been conducted in the particular area of DHOLPUR city [mentioned above], limited number of retail outlets had been selected which do not represent the whole of the retail outlets in DHOLPUR city. Some of the retailers do not take interest in filling out the E.D.S. format. Some of the retailers give wrong answers due to lack of interest. But in the surveyed area all the retailers were considered. Therefore, the scope of this study is limited and applicable to the surveyed area of DHOLPUR city.

3.7

LIMITATION OF STUDY

Skill set shortage Maintaining high quality standards Lack of talent pool Unable to do primary research

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Confidentiality Enhanced risk management Time constraint

4. FACTS & FINDINGS

Analysis of marketing activities

The Product Mix of ITC ITC had launched nearly all the products range off Non tobacco Products; they are very aggressive in their distribution of such products. The existing network of ITCs Cigarettes distribution is being used extensively for the sales all products of ITC Food division. They are trying to capitalized the market by associating the products with the ITC brand.

ITC Pricing strategy:

The pricing of the ITC food division depends upon the Customers demand schedule, the cost function and the competitors price. The pricing of the company is such that it caters to the need of all income groups of people but special provision has been kept for Low and middle income group, and their pricing are competitive with respect to other players like Britannia, Parle and Brisk farm. The company follows the Going rate pricing that is the price of the product depends upon the competitors price. The firm chooses pricing more or less the same as Market leader.

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ITC Promotional activities

A particular budget is allocated for the promotion of the products, the local promotion scheme is decided by the Area Sales Manages, it give its suggestion to the District office and that is forwarded to the Head Quarter in Kolkata. In another promotional scheme for Biscuits a particular number of cases is given freely to the distributors according to the amount of sale they make, this was a drop down promotion i.e. of the number of free cases that a particular distributors gets, off them a certain part is reserved for the retailers and customer if they buy a certain level of biscuit quantity.

ITC DISTRIBUTION Buoyed by a strong distribution network ITC is likely to retain its market share in the cigarettes business; the ban on advertisements is likely to work in favour of ITC thanks to the recall factor. The company's reliable distribution network also ensures superior inventory turnover than its peers.

5. DATA ANALYSIS

1. Customer are Aware with the food category of ITC?

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No, 30

Yes, 70

Yes

No

Graph: Graph showing the perception about the Itc ltd

Finding: Going through the knowledge of customer about the Itc we find the following finding:

Among various people 70% people like to associated with Itc ltd 30% Peoples are not interested to associated with Itc ltd Interpretation: It can be clear that 70% customer are interested to associate with Itc ltd but 30% are not.

2. Storekeeper give the knowledge of itc food products to customer ?

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Yes, 45 No, 55

Yes
Graph:

No

Graph showing the level of awareness about the Itc Company.

Finding:

From the above graph the following findings are can be seen as Follows:

It can be seen that the 80% Storekeeper give the knowledge of Itc food products to customer. ONLY 20% Storekeeper are not giving the knowledge of Itc food products to customer.

3. Which product of Itc(FMCG-In food divison) you like most?

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Other, 10 Mintofresh, 11 Sun feast, 37

Bingo, 15 Aashirva d, 27
Sun feast Minto-fresh Aashirvad Other Bingo

Graph: Graph showing the perception about the different brands. Finding: From the graph the following findings can be seen. 10% peoples are like Other. Among the various brands, 11% peoples are like Minto -Fresh. 15% peoples are like Bingo. 27% peoples are like Aashirvad. Among the various, 37% peoples are most like Sun- feast.

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Interpretation: people like different type of brands 11% peoples Like Minto-Fresh. 10% people like Other and 15% people like Bingo. 27% people like Aashirvad and most of peoples are like sun-feast.

4 Which is the more competitor of Sun feast in biscuits division?

Priyagold, 10

other, 5 Sun-Feast, 30

Britannia, 10

parle, 40
Sun-Feast parle Britannia Priyagold other

Graph: Graph showing the Competation of brands . Finding: From the graph the following findings are as follow: 55% people like Sun-Feast. 25% people like parle. 10% people like Britannia. 5% people like priyagold. 5% people like other. it can be clear that 55% peoples most like Sun-Feast.

Interpretation:

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5. How many percentage of people know about the sun-feast is a brand of itc?

No, 42

Yes, 58

Yes

No

Graph: Graph showing the knowledge about ITC products .

Finding: Going through the knowledge of people about the ITC we following finding:

find the

Among various people 70% people knowledge of sun-feast. 30% Peoples are not interested to sun-feast with : It can be clear that 70% peoples are knowing about the sun-feast is a brand of ITC but 30% are not.

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6. How many percentage of people know about the Aashirvad is a brand of itc?

No , 40 Yes, 60

Yes

No

Graph: Graph showing the knowledge about the Aashirvad is a brand of ITC. Finding: Going through the knowledge of people about the Aashirvad we find the following finding: Among various people 60% people known about the Aashirvad. 40% Peoples are not known the Aashirvad is a brand of ITC : It can be clear that 60% peoples are interested to the Aashirvad but 40% are not.

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7. How many percentage of people know about the Bingo is a brand of itc?

No, 30

Yes, 70

Yes

No

Graph: Graph showing the knowledge about the Bingo is a Brand of ITC.

Finding: Going through the knowledge of people about the Bingo we find the following finding:

Among various people 55% people knowledge about the BINGO is the product of ITC. 45% Peoples are not knowledge about the BINGO is the prouct of ITC Interpretation: It can be clear that 55% peoples are interested to the BINGO but 45% are not.

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9 Does the supply effect the demanded of brand?

Nev 12% er,

Always, 54%

Sometimes, 34%

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10 Do you get proper schemes and discount attach with ITC products?

Chart Title
Never 6%

Sometimes 26%

Regular 68%

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6. SWOT ANALYSIS OF ITC LTD

Strength : Management Brand Distribution network

Weakness :

Dependence on tobacco revenues Negative connections of tobacco

Opportunity : Rural market E-choupal Law per capita consumption of personal care products

Threat : Competation both domestic and international Increasing tax on cigarettes

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7 CONCLUSION
During my stay at FMCG Company, it was a great learning experience for me. I learned f the process of sales and distribution and the overall activity of the company which was indeed very useful to me. It was a wonderful experience working in a sales and distribution company. My stay at ITC Ltd was indeed very beneficial to me as it was more of learning than just working. I got a very good co-operation from all the employees of ITC Ltd Company during my sales and distribution study. This sales and distribution study will be very much beneficial to me in my future.

ITC has grown a lot over these three to four years. The company will surely grow further over the next few years for it is quite stable, innovative and it understands the market and its needs. It has fulfilled all needs and requirements of the people. If the company maintains its standards or increases it in the near future it surely will attain the number one position in the market.

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8 RECOMMENDATIONS

According to the survey conducted and after analyzing the Price, Promotion, Place and Product of the ITC and the consumer behaviour in the market the company can implement the following measure for increasing the sales and volume of their products. Advertisement for the Aashirvad Atta is found to be ineffective and infrequent. So, the company can come up with an aggressive advertisement to attract the Indian housewife as they are found to be the decision maker in the buying of Atta.

The company can come up the concept of forming a Retail chain of Food products across all over India as it is follows the marketing strategy of Umbrella branding. In such retail chains all the food division products can be sold at the discounted rate, as more and more products are coming under the Umbrella products like food processing. The branded Atta can be exported to other countries where we are currently exporting the whole wheat. The company can approach the government or distributing their products in Military canteens and can sell them to organization that provides the afternoon meals to the children as a part of mid-day meal scheme

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BIBLOGRAPHY

WWW.ITC PORTAL.COM WWW.BLONNET.COM WWW.JUST-FOOD.COM WWW.IMCRI.COM WWW.SCRIBD.COM WWW.INDIA INFOLINE.COM WWW.FOOD INDIA.COM WWW.NSE INDIA.COM WWW.THEHINDUBUSSINESSLINE.COM

REFRENCE BOOK TAKEN :

PHILIP KOTLAR

MARKETING MANAGEMENT

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