A Study on Sales Promotion and Distribution channel of Frito lays (bingo) conducted at ITC

INTRODUCTION TO CHANNELS OF DISTRIBUTION The American Marketing Association defines distribution channel as structure of intra company organization units and extra company organization units and dealers, wholesalers retailers through which a commodity, product or service is marketed. It can be further stated as a pathway composed of Intermediaries, also called Middleman, who performs such functions as needed to ensure smooth flow of goods and services from the manufacturing ends to the consuming ends in order achieve marketing objective of a company. CHANNEL FUNCTION AND FLOWS A marketing channel performs the work of moving goods from producers to consumers. It over comes the times, and possession gaps that separate goods and services from those who perform a number of ways of functions. a) Information: The collection and dissemination of current customers, competitors and other factors and forces in the environment. b) Promotion: The development and dissemination of persuasive communication designed to attract customers to the offers. c) Negotiation: The attempt to reach final agreement on the prices and other terms so that transfer of ownership or possession can be affected.

Title of the study The title of the Project is A Study on Sales Promotion and Distribution channel of Frito lays(bingo) conducted at ITC, Bangalore

Statement of the Problem It is important recognize why and how retailers or stockist make their buying decisions, so that marketer can make better strategic marketing decisions. Companys need information when, where and why a customer buys, and how the technological and social changes affects the consumers in their buying behavior and what are all the things which influences consumers and to have . in-depth insight into understanding the supply chain and Marketing of such a vast Companies like ITC. This study is mainly To Find out the sales promotion and distribution channel of frito lays(Bingo) of ITC Bangalore. Background of the Study

BINGO! Bingo is ITCs launched ready to eat snacks that hit Bangalore on 14th May 2007. In mid march, in mid march, ITC announced its foray into the Rs. 2000 crore (Rs. 20 billion) fast moving branded snacks market that has one major competitor- Frito Lay. After biscuits and pasta, the company has now targeted snacks segment, which is growing at 30% per year. ITC Limited- foods Division announced the launch of its snacks brand Bingo, which marks the companys foray into the fast growing branded snacks segment. The launch of bingo represents ITC Foods fifth major line of foods business after the highly successful Staples, Biscuits, Ready-to-Eat and Confectionery businesses. Bingo is strategically timed around the World Cup to leverage the tremendous popularity that such leisure and cocktail snacks will find among cricket lovers in the country. So cricket lovers can enjoy their favorite matches while savoring an all- new range of innovative Bingo snacks during the World Cup. The category of snacks is characterized by a few organized players with limited offering but the unorganized sector continues to rule the market. However, the organized sector is one of the fastest growing FMCG categories with an estimated growth rate of 30% annually. The organized snacks category is sub-divided into the traditional segment (Bhujia, Chanachur etc.), Western segment (Potato chips, cheese balls etc.) and the newly established Finger snacks segment, which is an adoption of traditional offerings to the western format.

OBJECTIVES OF THE STUDY To understand sales promotion and distribution channel of ITC (BINGO) and Fritolays. To study the weaknesses of Frito Lays in Bangalore region about sales promotion, distribution channel and product. To give suggestion to ITC on based of findings (BINGO). To study Frito Lays distribution channel in Bangalore region.

PURPOSE/ IMPORTANCE OF THE STUDY The study was undertaken to understand the working practices of Frito-Lays (The Leader) With special regard to motives and to take an insight into how this Snacks giant company works. The purpose of this project is to study the practice being at present in Frito-Lay Company so as to identify the strengths and weakness. The purpose of this project is to study: 1. 2. 3. 4. 5. 6. 7. The Product Range of Lays Its Pricing Structure, Its Distribution Channel, Its Merchandising Practice, Schemes, Sales Promotional Activities, Customer Behavior, and

In order to recommend the same for BINGO of ITC. It has given me an in-depth insight into understanding the supply chain and Marketing of such a vast Companies. I have tried to identify the weakness of BINGO if any and accordingly I have tried my best to recommend ways to eliminate the weakness thus identified, in order to make the system more effective.

For this purpose a primary research was conducted in Bangalore. The research required me to get questionnaires across customers of different age groups. The survey was also conduct among various outlet, hypermarkets and big retailers.

Scope of the Study This study will help the company to understand the sales promotion and distribution channel of ITC product Frito Lays. So, the study will help the company to improve their services. This study will also reveal the customers view about the company. This study is concerned and limited to Bangalore Region only. Data Collection Method The Data Collection Phase of marketing research is generally the most expensive and most Prone to error. The information collected should be both accurate and relevant as per the requirements of research project. Depending on the requirement, the research has to work out a suitable data collection method. Data Collection Methods can broadly be classified into two major categories listed below: Primary Method: When a researcher directly collects data then this method is known as primary methods e.g. interview and questionnaire methods. Secondary Method: The data are termed secondary data when they were not originally collected for use in the research project under consideration; they were collected rather for use by some other person or for some other project. 1. Determine samples Retailers Dealers/ Stockiest

Target population

Who buy and sells at small scale shops, small kiosks, paan Walla, road side stall. 2. Interviewing methodology The various ways to interact with Retailers, Dealers/ Stockiest, Customers would be: Structured Questionnaire

Interviews Observation

3.Questionnaire The questionnaire will contain three basic types of questions: multiple choice, numeric open end and text open end. Questionnaire will be filled by Retailer Wholesaler/Stockiest

4. Sample Size:80 retail stores like: Small scale shops, small kiosks, paan Walla, road side stalls. 5. Sample area:Sample of area is Bangalore Region 6. Method of contact: Personal interview/contacts based on the list of Respondents obtained from the company. 7.Research instrument: Structured questionnaire was used to collect the primary data.