47453984 agarbathi project

EXECUTIVE SUMMARY OF THE PROJECT:

The project is titled as competitor’s analysis, as per the topic the project is analyzing

between two competitor brands. The competitor for ITC Mangaldeep is Cycle 3 in 1.In

Agarbathi market:

Market leader : Cycle 3 in 1 Market challenger : Mangaldeep 5 in 1

Cycle 3 in 1 is the main competitor of Mangaldeep, the sales is almost in the ratio of 3:1

between cycle and Mangaldeep .Today cycle is the market leader and is in the top of

mind of the people because they were in this field for long time and the brand is very old,

everyone are aware about cycle brand .Mangaldeep is the market challenger, the project

mainly focus on what has to be done to become a market leader, what is the expectation

from an agarbathi , why do users of agarbathi prefer Cycle, what is their feedback about

Mangaldeep .How can we improve the sales of Mangaldeep? , what can be done to make

it a market leader?

A field study was done about the Agarbathi market to know the market better and to

analyse the no of brands existing in this field ,how much sales are made .after the study

of the market ,the research techniques to be applied and the field work is to be done

followed by the analysis of the data obtained in the due course of time and then a

presentation to be made about the field visit, what were research and findings out the

research, and also to give some suggestions and recommendations to the company and

which will help them to develop the brand in a better way.

The field study was done in two main cities in Tamilnadu with a sample size of 600:

PLACE SAMPLE SIZE

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CHENNAI 300COIMBATORE 300

TABLE OF CONTENTS

Page

ACKNOWLEDGEMENT…………………………………….........................................2

EXECUTIVE SUMMARY…………………………………………………………….. 3

LIST OF TABLES ……………………………………………………………………. 6

LIST OF FIGURES……………………………………………………………............. 7

ABBREVATIONS ……………………………………………………………............. 8

CHAPTER 1 ITC LTD

1.1 Company Profile………………………………………………………………8

1.1.1 ITC’S corporate Stratigies…..…………………. ……………………………10

1.2 History of ITC LTD……………………………………………………..…....11

1.3 About Mangaldeep……………………………………………………………15

1.4 Mission & Vision.……………………………………………………………..16

CHAPTER 2 COMPETITORS ANALYSIS

2.1 Introduction ………………………………………………………………..... 17

2.2 Competitor Array…………………………………………………………..… 19

2.3 Competitors profiling……………………………………………….…….…..21

2.3.1 Media Scanning ………….………………………………………………… .23

2.4 New Competitors…………………..……………….…………………...........24

2.5 About Cycle …………….….……………………………………….……….. 27

2.6 About Nandhi ………………………………………………………………... 28

2.7 About Onam………………………...………………………………………...28

2.8 About Sona Chandi…………………………………………………………….31

2

CHAPTER 3

3.1 Background of the Problem ………………………………………………….. 32

3.2 Objectives………………………………………………………………………33

3.4 Limitations …………..……………………………………………………….. .33

CHAPTER 4

4.1 Research Process ………………………………………………………………… 34

4.2 Research Design ………………………………………………………………… 35

4.2.1 Research Methods ……………………………………………………………….. 36

4.2.2 Secondary Data ………………………………………………………….…...........38

4.2.3 Sampling Technique ………………………………………………………………45

CHAPTER 5 METHODOLOGY

5.1 Areas under Coverage …………………………………………………………. 47

5.2 Observations …………………………………………………………………… 48

5.3 Hypothesis ……………………………………………………………………… 48

CHAPTER 6 FINDINGS

6.1 Results of the survey……………………………………………………………..50

6.1.1 Reasons behind shifting of brands………………………..………………………53

6.1.2 Reasons behind not using Mangaldeep ……..……………………………………. 53

6.1.3. Statistics about Chennai …………..…………………………………………….. 54

6.1.4 Statistics about Coimbatore ……….……………………………………………...54

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6.1.5 Fragrance of Mangaldeep vs. Cycle..................................................................…...55

CHAPTER 7 ANALYSIS OF SPSS

7.1 Regression between age & purchase made…………………………………………56

7.2 Sticks per use ………………………………………………………………………57

7.3 Usage per day………………………………………………………………………58

7.4 Awareness of Mangaldeep………………………………………………………….59

7.5 Awareness of ITC………………………………………………………………...…60

7.6 Awareness of cycle………………………………………………………………….61

7.7 Awareness of schemes………………………………………………………………62

7.8 Fragrance of mangaldeep……………………………………………………………63

7.9 Summary ……………………………………………………………………………64

CHAPTER 8 RECOMMENDATIONS &SUGESSTIONS………65

CHAPTER 9

9.1 APPENDICE ………………………………………………………………….66

9.2 REFERENCES ….……………………………………………………………73

9.3 CURICULAM VITAE……………………………………………………………78

4

CHAPTER – 1

1.1 Company Profile

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

nearly US $ 15 billion and a turnover of over US $ 4.65 billion. 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 third in pre-tax

profit among India's private sector corporations.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,

Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,

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.

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

5

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 company in India to voluntarily seek a corporate governance rating.

ITC employs over 21,000 people at more than 60 locations across India. The Company

continuously endeavors to enhance its wealth generating capabilities in a globalising

environment to consistently reward more than 4, 80,000 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."

As part of ITC's business strategy of creating multiple drivers of growth in the FMCG

sector, the Company has commenced marketing agarbattis (incense sticks) sourced from

small-scale and cottage units. This business leverages the core strengths of ITC in nation-

6

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.

1.1.1 ITC’S CORPORATE STRATIGIES:

ITC is a board-managed professional company, committed to creating enduring value for

the shareholder and for the nation. It has a rich organizational culture rooted in its core

values of respect for people and belief in empowerment. Its philosophy of all-round value

creation is backed by strong corporate governance policies and systems

• Create multiple drivers of growth by developing a portfolio of world class

businesses that best matches organizational capability with opportunities in

domestic and export markets.

• Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards

& Packaging, Agri Business and Information Technology.

• Benchmark the health of each business comprehensively across the criteria of

Market Standing, Profitability and Internal Vitality.

• Ensure that each of its businesses is world class and internationally competitive.

• Enhance the competitive power of the portfolio through synergies derived by

blending the diverse skills and capabilities residing in ITC are various businesses.

• Create distributed leadership within the organization by nurturing talented and

focused top management teams for each of the businesses.

Continuously strengthen and refine Corporate Governance processes and systems to

catalyze the entrepreneurial energies of management by striking the golden balance

between executive freedom and the need for effective control and accountability.

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1.2 HISTORY OF ITC:

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco

Company of India Limited'. Its beginnings were humble. A leased office on Radha 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. This

decision of the Company was historic in more ways than one. It was to mark the

beginning of a long and eventful journey into India's future. The Company's headquarter

building, 'Virginia House', which came up on that plot of land two years later, would go

on to become one of Kolkata's most venerated landmarks. The Company's ownership

progressively Indianised, and the name of the Company was changed to I.T.C. Limited in

1974. In recognition of the Company's multi-business portfolio encompassing a wide

range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging,

Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting

Gifting & Stationery - the full stops in the Company's name were removed effective

September 18, 2001. The Company now stands rechristened 'ITC Limited'.

Though the first six decades of the Company's existence were primarily devoted to the

growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies

witnessed the beginnings of a corporate transformation that would usher in momentous

changes in the life of the Company.

ITC's Packaging & Printing Business Division, was set up in 1925 as a strategic

backward integration for ITC's Cigarettes business. It is today India's most sophisticated

packaging house.

8

In 1975 the Company launched its Hotels business with the acquisition of a hotel in

Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of

ITC's entry into the hotels business was rooted in the concept of creating value for the

nation. ITC chose the hotels business for its potential to earn high levels of foreign

exchange, create tourism infrastructure and generate large scale direct and indirect

employment. Since then ITC's Hotels business has grown to occupy a position of

leadership, with over 75 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. Bhadrachalam

Paperboards amalgamated with the Company effective March 13, 2002 and became a

Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this

division merged with the Company's Tribeni Tissues Division to form the Paperboards &

Specialty Papers Division. ITC's paperboards' technology, productivity, quality and

manufacturing processes are comparable to the best in the world. It has also made an

immense contribution to the development of Sarapaka, an economically backward area in

the state of Andhra Pradesh. It is directly involved in education, environmental protection

and community development. In 2004, ITC acquired the paperboard manufacturing

facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu.

The Kovai Unit allows ITC to improve customer service with reduced lead time and a

wider product range.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint

venture. Since inception, its shares have been held by ITC, British American Tobacco

and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a

subsidiary of ITC Limited and its name was changed 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. The merged entity

was named the Tribeni Tissues Division (TTD). To harness strategic and operational

9

synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the

Paperboards & Specialty Papers Division in November 2002.

Also in 1990, leveraging its agri-sourcing competency, ITC set up the International

Business Division (IBD) for export of agri-commodities. The Division is today one of

India's largest exporters. ITC's unique and now widely acknowledged e-Choupal

initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 9 states

covering over 3.5 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was

inaugurated in August 2004 at Sehore. The year 2006 witnessed the ramping up of the

Company's rural retailing network with 17 'Choupal Saagars' being operational in three

states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC's Packaging & Printing business 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 December 2005, ITC

introduced Essenza Di Wills, an exclusive line of prestige fragrance products, to select

'Wills Lifestyle' stores. In 2006, Wills Lifestyle became title partner of the country's most

premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition

from buyers and retailers as the single largest B-2-B platform for the Fashion Design

industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the

event forward to consumers.

10

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. In a short span of 5 years, ITC Infotech has already crossed

over US$ 60 million in revenues. It also has a joint venture with ClientLogic, a top five

global Business Process Outsourcing (BPO) provider.

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

just six years, the Foods business has grown to a significant size with over 150

differentiated products under six distinctive brands, with an enviable distribution reach, a

rapidly growing market share and a solid market standing.

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire

value chain found yet another expression in the Safety Matches initiative. ITC now

markets popular safety matches brands like iKno, Mangaldeep, VaxLit, Delite and Aim.

ITC's foray 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.

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1.3 ABOUT MANGALDEEP:

ITC has launched Mangaldeep Agarbattis across a wide range of fragrances like Rose,

Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and

Mogra. Recently, a new fragrance Yantra has been launched which evokes the ambience

of a temple. Mangaldeep is also available in 3-in-1 and 5-in-1 packs giving the consumer

a choice of fragrances in a single pack. Mangaldeep is appropriately priced to appeal to a

cross-section of consumers at various price segments. 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".

The 'Mangaldeep' brand is fast emerging as the only national brand in an industry

dominated by multiple local brands. Mangaldeep is also being exported to United States

of America, United Arab Emirates, Bahrain, Nepal, Singapore, Malaysia, Oman and

South Africa.

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.

Six of ITC's small scale manufacturers are the first in the country to receive the ISO

9000-2001certification for agarbatti making.

ITC has also entered into an MOU with the Khadi & Village Industries Commission

(KVIC) to source agarbattis from KVIC approved units, and to distribute agarbattis

through the Khadi Bhavan / Khadi Bhandar outlets across the country. This collaborative

12

venture is expected to result in employment generation, particularly in the semi-urban

and rural areas.

ITC is also supporting an 'Agarbatti Community Participation Programme' run by the

Vyakti Vikas Kendra, a non-profit organisation founded by the renowned spiritual guru

Sri Sri Ravishankar and located near Bengaluru. Over 100 village women are gaining

from the training that this organisation imparts in rolling agarbattis. ITC is also beginning

to extend similar support to other NGOs in states like Bihar, Tripura and Tamil Nadu,

who are also setting up agarbatti units, training village women in rolling agarbattis and

employing these women in these units.

1.4 MISSION & VISION:

Vision

Sustain ITC’s position as India’s most valuable corporations through world class

performance, creating growing value for Indian economy and company’s stake holders

Mission

To enhance the wealth generating capability of the enterprise in a globalizing

environment, delivering superior and sustainable stakeholder value.

13

http://www.itcportal.com/iww/agarbattis.htm

Chapter 2 COMPETITORS ANALYSIS:

2.1 INTRODUCTION:

Competitor analysis in marketing and strategic management is an assessment of the

strengths and weaknesses of current and potential competitors.

Competitors Analysis

Some businesses think it is best to get on with their own plans and ignore the

competition. Others become obsessed with tracking the actions of competitors (often

using underhand or illegal methods). Many businesses are happy simply to track the

competition, copying their moves and reacting to changes.

Competitor analysis has several important roles in strategic planning:

• To help management understand their competitive advantages/disadvantages relative to

competitors

• To generate understanding of competitors’ past, present (and most importantly) future

strategies

• To provide an informed basis to develop strategies to achieve competitive advantage in

the future

• To help forecast the returns that may be made from future investments (e.g. how will

competitors respond to a new product or pricing strategy?

Questions to ask

What questions should be asked when undertaking competitor analysis? The following is

a useful list to bear in mind:

• Who are our competitors? (see the section on identifying competitors further below)

• What threats do they pose?

• What is the profile of our competitors?

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• What are the objectives of our competitors?

• What strategies are our competitors pursuing and how successful are these strategies?

• What are the strengths and weaknesses of our competitors?

• How are our competitors likely to respond to any changes to the way we do business?

The sources of competitor information can be neatly grouped into three categories:

• Recorded data: this is easily available in published form either internally or externally.

Good examples include competitor annual reports and product brochures;

• Observable data: this has to be actively sought and often assembled from several

sources. A good example is competitor pricing;

• Opportunistic data: to get hold of this kind of data requires a lot of planning and

organisation. Much of it is “anecdotal”, coming from discussions with suppliers,

customers and, perhaps, previous management of competitors.

12 Points for Doing Competitive Analysis

• Be a customer

• Find out as much as you can about the people who run competing businesses

• Buy stock in your competitors

• Talk to your competitors' customers.

• Use the Internet.

• Check public filings.

• Get to know local librarians.

• Attend industry conferences and trade shows

• Assess the competition's goals.

• Be aware of the potential for new competition.

• Don't delegate the job of keeping up with competitors

• Define the competitive landscape broadly.

Some of the components are:

• Competitor array

15

• Competitor profiling

• Media scanning

• New competitors

2.2 COMPETITOR ARRAY:

One common and useful technique is constructing a competitor array. The steps include:

• define your industry - scope and nature of the industry

• determine who your competitors are

• determine who your customers are and what benefits they expect

• determine what the key success factors are in your industry

• rank the key success factors by giving each one a weighting - The sum of all the

weightings must add up to one.

• rate each competitor on each of the key success factors - this can best be

displayed on a two dimensional matrix - competitors along the top and key

success factors down the side.

• multiply each cell in the matrix by the factor weighting.

• sum columns for a weighted assessment of the overall strength of each competitor

relative to each other.

• An example of a competitor array follows:

Key Industry

Success FactorsWeighting

Competitor # 1

rating

Competitor #1

weighted

Competitor #2

rating

Competitor #2

weighted

1 - Extensive

distribution.4 6 2.4 3 1.2

2 - Customer focus .3 4 1.2 5 1.5

3 - Economies of

scale.2 3 .6 3 .6

4 - Product

innovation.1 6 .6 4 .4

Totals 1.0 20 4.9 18 3.6

16

Based on material presented in "Beat the Competition: How to Use Competitive

Intelligence to Develop Winning Business Strategies", Ian Gordon, Basil Blackwell

Publishers, Oxford, UK, 1989.

In this example competitor #1 is rated higher than competitor #2 on product innovation

ability (6 out of 10, compared to 4 out of 10) and distribution networks (6 out of 10), but

competitor #2 is rated higher on customer focus (5 out of 10). Overall, competitor #1 is

rated slightly higher than competitor #2 (20 out of 40 compared to 18 out of 40). When

the success factors are weighted according to their importance, competitor #1 gets a far

better rating (4.9 compared to 3.6).

Two additional columns can be added. In one column you can rate your own company on

each of the key success factors (try to be objective and honest). In another column you

can list benchmarks. They are the ideal standards of comparisons on each of the factors.

They reflect the workings of a company using all the industry's best practices.

Guidelines for Doing a Competitive Analysis

The competitive analysis section can follow a format that is shown below. In practice we

recomend this section be a single-spaced, two-column report that is limited to a single

sheet of paper (both sides used). Consequently, font size is generally 10 point or less.

This report would be made for each of the major competitors. While most of this report

focuses on the overall analysis of the competitor, you should recognize that you are

primarily interested in how this information may impact your company and, specifically,

a product or product line. Thus, you should make sure, where possible, to focus your

information on how it impacts the markets in which your product competes.

Note each sub-section within a section will contain 1-5 sentences that explain the sub-

section.

17

• General Company Information - includes name, location (headquarters, other

locations of importance), website address

• Summary of Business – includes sections that summarize the company, business

units and nature of business

• Business Overview – includes sections on history, ownership structure, types of

businesses, mission, strategy/objectives, key executives

• Recent News/Developments – important company developments within last 6-12

months (e.g., reports from news sources, press releases, financial statements)

• Financial and Market Share Analysis – includes sections on corporate

performance, trends, market share for product

• Marketing – includes sections on products and services offered, target markets,

positioning, customers/users, pricing model, promotional efforts, sales force, and

distribution

• Other Issues – includes sections on technology capability, partnership

arrangements, intangible issues

• Competitors – list key competitors facing this company

• SWOT – strengths, weaknesses, opportunities and threats

2.3 COMPETITOR PROFILING:

Another common technique is to create detailed profiles on each of your major

competitors. These profiles give an in-depth description of the competitor's background,

finances, products, markets, facilities, personnel, and strategies. This involves:

• Background

o location of offices, plants, and online presences

o history - key personalities, dates, events, and trends

o ownership, corporate governance, and organizational structure

• Financials

o P-E ratios, dividend policy, and profitability** various financial ratios,

liquidity, and cash flow

o Profit growth profile; method of growth (organic or acquisitive)

18

• Products

o products offered, depth and breadth of product line, and product portfolio

balance

o new products developed, new product success rate, and R&D strengths

o brands, strength of brand portfolio, brand loyalty and brand awareness

o patents and licenses

o quality control conformance

o reverse engineering

• Marketing

o segments served, market shares, customer base, growth rate, and customer

loyalty

o promotional mix, promotional budgets, advertising themes, ad agency

used, sales force success rate, online promotional strategy

o distribution channels used (direct & indirect), exclusivity agreements,

alliances, and geographical coverage

o pricing, discounts, and allowances

• Facilities

o plant capacity, capacity utilization rate, age of plant, plant efficiency,

capital investment

o location, shipping logistics, and product mix by plant

• Personnel

o number of employees, key employees, and skill sets

o strength of management, and management style

o compensation, benefits, and employee morale & retention rates

• Corporate and marketing strategies

o objectives, mission statement, growth plans, acquisitions, and divestitures

o marketing strategies

19

http://en.wikipedia.org/wiki/Product_line

2.3.1 MEDIA SCANNING:

We can learn a lot about the competitive environment by scanning our competitors' ads.

Changes in a competitor's advertising message can reveal new product offerings, new

production processes, a new branding strategy, a new positioning strategy, a new

segmentation strategy, line extensions and contractions, problems with previous

positions, insights from recent marketing or product research, a new strategic direction, a

new source of sustainable competitive advantage, or value migrations within the industry.

It might also indicate a new pricing strategy such as penetration, price discrimination,

price skimming, product bundling, joint product pricing, discounts, or loss leaders. It may

also indicate a new promotion strategy such as push, pull, balanced, short term sales

generation, long term image creation, informational, comparative, affective, reminder,

new creative objectives, new unique selling proposition, new creative concepts, appeals,

tone, and themes, or a new advertising agency. It might also indicate a new distribution

strategy, new distribution partners, more extensive distribution, more intensive

distribution, a change in geographical focus, or exclusive distribution. Little of this

intelligence is definitive: additional information is needed before conclusions should be

drawn.

A competitor's media strategy reveals budget allocation, segmentation and targeting

strategy, and selectivity and focus. From a tactical perspective, it can also be used to help

a manager implement his/her own media plan. By knowing the competitor's media buy,

media selection, frequency, reach, continuity, schedules, and flights, the manager can

arrange his/her own media plan so that they do not coincide.

Other sources of corporate intelligence include trade shows, patent filings, mutual

customers, annual reports, and trade associations.

Some firms hire competitor intelligence professionals to obtain this information.

20

2.4 NEW COMPETITORS:

In addition to analyzing current competitors, it is necessary to estimate future competitive

threats. The most common sources of new competitors are:

• Companies competing in a related product/market

• Companies using related technologies

• Companies already targeting your prime market segment but with unrelated

products

• Companies from other geographical areas and with similar products

• New start-up companies organized by former employees and/or managers of

existing companies

The entrance of new competitors is likely when:

• There are high profit margins in the industry

• There is unmet demand (insufficient supply) in the industry

• There are no major barriers to entry

• There is future growth potential

• Competitive rivalry is not intense

• Gaining a competitive advantage over existing firms is feasible

21

Products of Competitors: Products

Shrinivas Sugandhalaya

Nag Champa, Natural, Ajaro, Aastha, Geet Govind, Super Hit, Black ,Blossom, Royal, Masala Chandan, Sai Ram, Rajdhani, Neelkant, Siddhi, Vinayak, Satya Fresh Rose, Satya Super Sandal, Tufan, Ritugandha, Parijhatak and many more.

Bharat Industrial Corporation

Panchavati 4 in 1, Shivam Dhoop Bathi, Himalaya, Dil Mini Pouch, Panchavati Flora, Sai Baba 2 in 1, Panchavati Dhoop Double Size, Panchavati Dhoop Small, Panchavati Dasang Dhoop, Sandal Dhoops

Ranga Rao & Sons Cycle 3x1, Rhythms, Sandalum, N.R., Woods

Padmini ProductsChandan, Lyrics, Spiritual Guide, Gulistan, Brindavan Sandal, Juhi, Padmini Incense, Pakeezah, Padmini Dhoop.

Parimal Mandir Bharat Vasi, Moments, Rainbow 7x1Aravinda Parimal Works

Sugandha Sringar, Sugandha Sringar Gold

N. K. Subaiah Setty & Sons

Sugandha Kokila

Sri Balakrishna Perfumery Works

Danka Sugandh, Danka Sugandh Gold

Baikery Industries ShivaranjaniGajanana Perfumery Works

Vaishnavi Flora, Mangaladevi, Harileela, Chafa Flora

Moksh Agarbathi Co.

Akash Phool, Swarna Champa, Swarna Mallika, Swarna Gulab, Swarna Chandan, Swarna Night Queen, Swarna Mogra, Swarna Sugandha 4in1, Swarna Kasturi, Swarna, Divya Sugandh

Mysore Temple Bell Agarbathi Works

Devika Flora, Vidarbha, Ashwamegha, Navaratna, Sublakshmi, Hawan

Laxmi Sugandhalaya

Gayatri Hirva Chaffa, Gajra, Radhe Radhe, Sanskar, Gulab

Nikhil ProductsPrabhu Darshan, Krishna Leela, Ganesh Flora, Mangalam, Bhagwat, Ananda, Jai Jaganath Pouch

Elite Agarbathi Works

Panadi, Wonderwood, Prabhu Pooja, Toofan, Sandal

Amber Aromatics Super Mogra, Super Sandal, Amber Flora, RatnamalaAsoka Trading Bharat DarshanAdarsh Aromatics Master GoldB. V. Aswathiah & Bros.

Nandi Mist, Joy, Madhu Mallika, Nandi Flora, Sandal, Rose

Aparanji Industries Sugandha Swarna, Sugandha Gold.Tejas Incense Co. Sri Sai FloraAmbica Chemical Products

Ambica Heaven

Vasu Agarbathies HeritageHem Corporation Precious Chandan

Rajalakshmi Perfumery Works

Phoshak

22

Balaji Agarbathi Co.

Balaji 100, Om Sree Sai, Chandanam, Agarwood, Nad Al Oodh, Golden Flora

Shubha Mangla Industries

Shubha Mangla Chandan, Heena

Jayant Agarbathi Co.

Rolex Rose, Rolex, Maratha Peshwa

Pradhan Perfumers Royal Life

Omkar Parimal Works

Supreme, Shiva

Orkay Fragrances Brinda

Ashok Agarbathi Works

Mogra, Chandan, Panadi, Parijatha

Mysore Y.S. Agarbathi Works

Delite, Kewda, Parijatha

Vedavyasa Parimal Works

Chamundeshwari Computer Sambrani Dhoop, Chamundeshwari Sandal Dhoop, Three Saints Dhoop, Chamundeshwari Maha Maruthi Dasangam, Sandal & Rose Dhoop, Chamundeshwari Sandal Powder, Chamundeshwari Kum Kum, Chamundeshwari Cones.

Anupam Industries Mangal Murti Rose, Gugal, Loban, Dasangam & Chandan Dhoop Sticks

Vasant Products Kesar Special & Akshar Dham Dhoop SticksAlpine Fragrance Jagat Jyothi CamphorRatilal & Co. G. F. CamphorGokul Sandal Powder

Sri Raghavendra Soapnut Works

Rose Benzoin, Singapore Shibolga Loban Powder, Crystal Dhoop

Arochem Industries Roll On – Sukhad, Champa, Attar Phool, Millennium

Health Products Rose Water

Fragrance IndiaOm Shanti Om, Rambakth Hanuman, Maha Shivaratri, Divine, Fragrance, Divine Sandal, Hare Krishna

2.5 ABOUT CYCLE:

23

Cycle brand is owned by Bangalore based N Rangarao and sons. NRS were pioneers in

branding this difficult market and Cycle brand is one of the largest agarbatti brand in

India which have a market share of 8%.

Cycle brand was launched in 1948. In this commodity market, Cycle was positioned as a

premium agarbatti brand. The brand was trying to differentiate by good packaging,

marketing campaigns and quality. Cycle 3-in -one is the most popular which have three

different fragrance sets of agarbattis in one pack.

Cycle brand has established itself in the market with some good marketing campaigns

with emphasis on quality and fragrance.

The Rs 130-crore NRRS — which also manufactures the Lia, Rhythm, Flute and

Nature’s Gift brands — is one of the few organized players in an industry with almost no

big names. However, in the recent past, the domestic agarbatti market — which has

grown at a CAGR of around 15% over the last five years, and is expected to grow at

roughly the same rate over the next five — has seen a fair bit of action, with the likes of

Hindustan Lever-SC Johnson (Glade), Reckitt Benckiser (Haze) and ITC (Mangaldeep)

entering the market.

2.6 ABOUT NANDHI:

24

M/s B.V Aswathaiah & Bros, a legend in the agarbathi venture is a 60 year old tradition

of fragrance and faith.

Our Products of excellence: Deluxe Sandal, Nandi Diamond, Deluxe Rose, Nandi Joy,

Nandi Mist and a host of others are cratered with care to reverberate tranquility and joy

amongst our committed clientele who return to us year after year.

Research has proved that pleasant odors do make a person more active. It also causes the

cells to trigger signals and stimulate various physiological responses.

One of the most important things about incense is that reduces stress.

Nature has gifted the sense of smell to identify the most pleasant odors. Your choice will

be the best and our desire is to make sure you will have it.

2.7 ABOUT ONAM

Profile

Endowed with the understanding of the subtle nuances of agarbathi making and inspired

by the secular feature of manufacture and export of incense sticks, cones, dhoops with

various types of fragrances like: floral, fruity, spice etc. Onam is a master of creativity

and innovation. With a humble beginning in 1962 with just one brand ‘ONAM’, we have

become a leading manufacturer and exporter with various categories of product range.

Our relentless service and high level of consistency in terms of our products quality have

helped us to bag many achievements. Today, our brand reaches to every nook and corner

of India and many parts of the world.

Products

We are leading manufacturer and exporter of incense sticks, cones, dhoops and pooja

items that includes:

25

• Incense Sticks

• Incense Cones

• Dhoop Stems

• Dhoop Sticks

• Hawan Samagri

• Kum Kum

• Vibhuti

• Sandal

• Guggul

• Loban

Our Incense Sticks are available in various fragrances like:

• Champa

• Boquet

• Jasmine

• Intimate

• Lavender

• Loban

• Lilly

• Oodh

• Lotus

• Sandal

• Rose

• Lilly of Valley

• Tuberose

• Floral

• Honeysuckle

• Kewra

• Peach

• Patchouli

• Frankincense

26

• Cinnamon

Banana Product Category:

• Hexagonal

• Square

• Flat Box (pouch)

• 12" Long Box

• 16" Long Box

• Gift package

• Drawer Sachets

• Perfumed Cones

• Perfumed Dhoop Stems

Members

• Federation of Karnataka Chambers of Commence & Industry, Bangalore

• Karnataka Small Scale Industries Association, Bangalore.

• All India Agarbathi Manufacturers Association, Bangalore.

• The Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council,

Mumbai.

• India Trade Promotion Organization, New Delhi.

27

2.8 ABOUT SONA CHANDI:

Shankar Perfumery Works started its operations in the year 1963, in Bangalore India.

Manufacturers & exporters of agarbatti, incense sticks, from 1963. Our incense sticks,

agarbatti brands like Sona Chandi agarbatti, Kumbha agarbatti Black Diamond incense

sticks, Mangala theepam flora agarbatti & Cinnamon Masala incense sticks are well

known internationally.

Shankar Perfumery Works made an beginning in the year 1963, in Bangalore India. The

founder Shri K.R. Sathyanarayana Setty, laboured to make this unit into one of the major

manufactures of "Masala" perfumed and "Scented" Agarbathies.

Shankar Perfumery Works started into the production of Darbar bathi / Flora agarbattis

100 kgs. A day and it was sold only to hand full of customers at Kolkatta market,

gradually sons of K.R.Sathyanarayana Setty, K.S. Shankar, K.S. Ramanath & K.S. Shiva

prasad joined the business thereby strengthening the hands of K.R. Sathayanarayana

Setty.

Today the production of Shankar Perfumery Works is above 2500 tons per year. Till

1983 Shankar Perfumery Works was manufacturing only Darbar Indian traditional

agarbatti and masala flora batties with the limited market. Shankar Perfumery Works

made a beginning with the brand "Satyam" in scented and "Kumbha" in Halmaddi / flora

agarbathies and followed by many other successful brands. Today shankar perfumery

works products like Sona Chandi agarbathi, Kumbha flora agarbathi, Black Diamond

Indian incense sticks, Mangala theepam flora agarbatti & Cinnamon Masala / flora

bathies, are very well know in international markets.Company has catering these products

to the international market for the passed 2 decades.Since last decade company is striving

to globalise their products 100%. As on today 35% company share is with overseas

markets only.

28

Today, they have more than 40 years of experience manufacturing Indian incense sticks

of flora / masala / sented / perfumed incense sticks, we are pioneers in high class flora

agarbathis, and we have our own R&D unit all the process of our products takes in house

only. They exporters of our Indian incense sticks to more than 23 countries across the

globe. We are catering more than 150 flavours, today, with a strong staff of 200 plus

people.

CHAPTER 3

3.1 BACK GROUND OF THE PROBLEM:

To bring Mangaldeep as a Market Leader, the sales have to be increased drastically,

but there are certain problems that have to be faced, since the product is Agarbathi

such problems exist they are:

• People lack brand loyalty when they purchase Agarbathi

• Buy whichever is available

• Lack of awareness about Mangaldeep

• Buy whenever schemes are introduced

• Shifting from Mangaldeep to Cycle or to other brands

• Shifting from cycle or other brands to Mangaldeep

3.2 MAIN OBJECTIVE:

TO MAKE ITC MANGALDEEP A MARKET LEADER

29

Objectives:

• What are the expectations of the consumers from our product Mangaldeep? In what way is cycle (3 in 1) better than Mangaldeep?

• Reasons behind the consumers choosing cycle 3 in 1 than Mangaldeep 5 in 1

• Reasons behind consumers shifting from Mangaldeep 5 in 1 to cycle 3 in 1

• Reasons behind consumers choosing Mangaldeep 5 in 1 for cycle 3 in 1 and also the to know why they have shifted from cycle 3 in 1 to Mangaldeep 5 in 1

• To know what impact the consumers have on Mangaldeep 5 in 1, have reached the consumers effectively, how do they place the product?

3.3 LIMITATIONS OF THE PROJECT:

The market research has its own limitations, the field study is done in specific areas and

the sample size may be small, to come to conclusions.

There may be some problems like:

1. Sampling errors

2. Questionnaire errors

3. Errors in data entry

4. Errors of respondents

Some others drawbacks for mangaldeep ITC can be:

1. Lack of awareness about the brand

2. Lack of awareness about the advertisements

3. Lack of brand loyalty

4. Availability of substitutes

Chapter 4

4.1 RESEARCH PROCESS

30

The research process includes the various steps

Fig 5.1 Steps followed in this research process

4.2 RESEARCH DESIGN

31

A research design is a framework for conducting the marketing research project .it details

the procedures necessary for obtaining the information needed to structure or solve

marketing research problems.

There are many ways to get information. The most common research methods are:

literature searches, talking with people, focus groups, personal interviews, telephone

surveys, mail surveys, email surveys, and internet surveys.

A literature search involves reviewing all readily available materials. These materials

can include internal company information, relevant trade publications, newspapers,

magazines, annual reports, company literature, on-line data bases, and any other

published materials. It is a very inexpensive method of gathering information, although it

often does not yield timely information. Literature searches over the web are the fastest,

while library literature searches can take between one and eight weeks.

Talking with people is a good way to get information during the initial stages of a

research project. It can be used to gather information that is not publicly available, or that

is too new to be found in the literature. Examples might include meetings with prospects,

customers, suppliers, and other types of business conversations at trade shows, seminars,

and association meetings. Although often valuable, the information has questionable

validity because it is highly subjective and might not be representative of the population

4.2.1 RESEARCH METHODS:

32

Exploratory Research:

Exploratory research is one type of research design, which is done for this research which

has its primary objective the provision of insights into and comprehension of the problem

situation confronting the researcher. This research is done here as to define the problem

more precisely , identify relevant course of action or gain additional insights before

approach could be developed.

The methods adopted under exploratory research are:

1. Observation and

2. In-depth interviewing technique

3. secondary data analysis

Descriptive research:

Descriptive research or statistical research provides data about the population or

universe being studied. But it can only describe the "who, what, when, where and how"

of a situation, not what caused it. Therefore, descriptive research is used when the

objective is to provide a systematic description that is as factual and accurate as possible.

It provides the number of times something occurs, or frequency, lends itself to statistical

calculations such as determining the average number of occurrences or central

tendencies.

One of its major limitations is that it cannot help determine what causes a specific

behaviour, motivation or occurrence. In other words, it cannot establish a causal

research relationship between variables.

The methods adopted under descriptive research are:

1. Telephonic interviews

33

2. Consumer surveys

3. In- home personal interviews

4. Mall intercept personal interviews

5. E-mail interview

6. Internet interviews

Consumer Surveys Facilitate Decision Making

The most successful companies in the world rely on consumer surveys to assess their

particular market and the attitude of its consumers. Making assumptions about your

market is simply not enough. Failing to have quantitative research to back up your

marketing strategies can be costly. You must be able to present your product, service or

brand in ways that will be acceptable to your target. That is why regularly conducting

consumer surveys is critical to business success.

Consumer surveys can tell you:

• The demographics of your target audience, including: age, gender, income,

marital status, educational level and leisure activities

• Why people make certain purchasing decisions

• When and where people shop

• If people have a need for your product or service

• If there is an untapped market for your product or service

• Current awareness of your brand versus your competitors'

• People's buying habits

4.2.2 Secondary data analysis:

34

Secondary data analysis can be literally defined as second-hand analysis. It is the

analysis of data or information that was either gathered by someone else (e.g.,

researchers, institutions, other NGOs, etc.) or for some other purpose than the one

currently being considered, or often a combination of the two (Cnossen 1997).

If secondary research and data analysis is undertaken with care and diligence, it can

provide a cost-effective way of gaining a broader understanding of specific phenomena

and/or conducting preliminary needs assessments.

Secondary data are also helpful in designing subsequent primary research and, as well,

can provide a baseline with which to compare your primary data collection results.

Therefore, it is always wise to begin any research activity with a review of the secondary

data the final report to look like, a list of the types of data that you need to collect, and a

preliminary list of data sources.

SOURCES OF SECONDARY DATA:

Official Statistics: Official statistics are statistics collected by governments and their

various agencies, bureaus, and departments. These statistics can be useful to researchers

because they are an easily obtainable and comprehensive source of information that

usually covers long periods of time.

However, because official statistics are often “characterized by unreliability, data gaps,

over-aggregation, inaccuracies, mutual inconsistencies, and lack of timely reporting”

(Gill 1993), it is important to critically analyze official statistics for accuracy and

validity. There are several reasons why these problems exist:

1. scale of official surveys generally requires large numbers of enumerators

(interviewers) and, in order to reach those numbers enumerators contracted are often

under-skilled;

35

2. The size of the survey area and research team usually prohibits adequate supervision

of enumerators and the research process; and

3. Resource limitations (human and technical) often prevent timely and accurate

reporting of results.

Technical Reports: Technical reports are accounts of work done on research projects.

They are written to provide research results to colleagues, research institutions,

governments, and other interested researchers. A report may emanate from completed

research or on-going research projects.

Scholarly Journals: Scholarly journals generally contain reports of original research or

experimentation written by experts in specific fields. Articles in scholarly journals

usually undergo a peer review where other experts in the

same field review the content of the article for accuracy, originality, and relevance.

Literature Review Articles: Literature review articles assemble and review original

research dealing with a specific topic. Reviews are usually written by experts in the field

and may be the first written overview of a topic area. Review articles discuss and list all

the relevant publications from which the information is derived.

Trade Journals: Trade journals contain articles that discuss practical information

concerning various fields. These journals provide people in these fields with information

pertaining to that field or trade.

Reference Books: Reference books provide secondary source material. In many cases,

specific facts or a summary of a topic is all that is included. Handbooks, manuals,

encyclopedias, and dictionaries are considered.

Under standing the market for Agarbathi

36

The size of market is quite big, there are around 395 players in Chennai alone .The major players are:

AGARBATTI Sales unit in sticks

N RANGA RAO & SONS CYCLE 3 IN 1 1,558.60

I T C MANGALDEEP 530.9

N RANGA RAO & SONS CYCLE 299.9

B V ASWATHIAH & BROS NANDI 265.3

PADMINI PRODS PADMINI 256.6

PARIMAL MANDIR SHANTI NIKETAN 245.5

PARIMAL MANDIR PARIMAL 241.4

LOCAL LOCAL 020 STICKS 233.2

LOCAL LOCAL 100 STICKS 230.3

The market share value of the major players

AGARBATTIMS Val (Sticks) -

Agarbatti

37

N RANGA RAO & SONS CYCLE 3 IN 1 22.1

I T C MANGALDEEP 6.4

N RANGA RAO & SONS CYCLE 5.1

LOCAL 020 STICKS 4.9

B V ASWATHIAH & BROS NANDI 4.8

PADMINI PRODS PADMINI 4.5

PARIMAL MANDIR PARIMAL 4.4

PARIMAL MANDIR SHANTI NIKETAN 3.9

The market share vol and value is shown below:

AGARBATTI MS VOL (sticks)MS VAL (in

lakhs)

N RANGA RAO & SONS CYCLE 3 IN 1 23.6 539.1

I T C MANGALDEEP 8.1 169.8

N RANGA RAO & SONS CYCLE 4.6 124.6

LOCAL LOCAL 020 STICKS 4.2 118.9

B V ASWATHIAH & BROS NANDI 3.9 116.6

PADMINI PRODS PADMINI 3.6 109.2

PARIMAL MANDIR PARIMAL 3.6 106

PARIMAL MANDIR SHANTI NIKETAN 3.6 96.2

38

The price of the pack with the no of sticks is given below:

From the above data:

The market leader : N RANGA RAO & SONS CYCLE 3 IN 1

The market challenger : I T C MANGALDEEP

AGARBATTI Sticks per pack Price per pack

N RANGA RAO & SONS CYCLE 3 IN 1 35 12

I T C MANGALDEEP 24 8

N RANGA RAO & SONS CYCLE 32 13

LOCAL LOCAL 020 STICKS 20 10

B V ASWATHIAH & BROS NANDI 33 14

PADMINI PRODS PADMINI 36 16

PARIMAL MANDIR PARIMAL 24 11

PARIMAL MANDIR SHANTI NIKETAN 12 5

39

CYCLE 3 IN 1 VS MANGALDEEP

In lakhs

DESCRIPTION CYCLE 3 IN 1 MANGALDEEP

SALES UNITS IN STICKS 1,558.60 530.9

SALES UNITS IN PACKS 44.6 22.5

MS VOL (STICKS) 23.6 8.1

VALUE (LAKHS) 539 180

MS VALUE(STICKS) 22.1 6.4

WT VAL (RETAIL OUTLETS) 89% 59%

OFF TAKE IN STICKS 4,949 3,466

OFF TAKE IN PACKS 142 146

PRICE PER PACK 12 8

NO OF STICKS PER PACK 35 24

40

When cycle 3 in 1 is compared with Magaldeep,

The sales units in sticks for Cycle 3 in 1 is three times of Mangaldeep, i.e. it is in the ratio 3:1

the sales units in packs is in the ratio 2:1,ie for every two pack sales of Cycle 3 in 1 ,there one pack sale in Mangaldeep .

The market share price in sticks is also in the ratio of 3:1

In 89% of retail outlets Cycle 3 in 1 is available and 59% of retail outlets Mangaldeep is available.

The pricing and the no of sticks per pack for Mangaldeep is lower than Cycle 3 in1.

Cost of producing one stick of Agarbathi

• In Cycle 3 in 1 is 35 paise

• In Mangaldeep is 33 paise

41

4.2.3 SAMPLING TECHNIQUES:

It is incumbent on the researcher to clearly define the target population. There are no

strict rules to follow, and the researcher must rely on logic and judgment. The population

is defined in keeping with the objectives of the study.

Sometimes, the entire population will be sufficiently small, and the researcher can

include the entire population in the study. This type of research is called a census study

because data is gathered on every member of the population.

Usually, the population is too large for the researcher to attempt to survey all of its

members. A small, but carefully chosen sample can be used to represent the population.

The sample reflects the characteristics of the population from which it is drawn.

Sampling methods are classified as either probability or nonprobability. In probability

samples, each member of the population has a known non-zero probability of being

selected. Probability methods include random sampling, systematic sampling, and

stratified sampling. In nonprobability sampling, members are selected from the

population in some nonrandom manner. These include convenience sampling, judgment

sampling, quota sampling, and snowball sampling. The advantage of probability

sampling is that sampling error can be calculated. Sampling error is the degree to which a

sample might differ from the population. When inferring to the population, results are

reported plus or minus the sampling error. In nonprobability sampling, the degree to

which the sample differs from the population remains unknown.

42

The target populations for this research are house wifes, women above the age of 25, all

shopkeepers & other retailers. The main sampling technique adopted here are

1. Random sampling

2. Judgment sampling

3. convenience sampling

Random sampling is the purest form of probability sampling. Each member of the

population has an equal and known chance of being selected. When there are very large

populations, it is often difficult or impossible to identify every member of the population,

so the pool of available subjects becomes biased.

Judgment sampling is a common nonprobability method. The researcher selects the

sample based on judgment. This is usually and extension of convenience sampling. For

example, a researcher may decide to draw the entire sample from one "representative"

city, even though the population includes all cities. When using this method, the

researcher must be confident that the chosen sample is truly representative of the entire

population.

Convenience sampling is used in exploratory research where the researcher is interested

in getting an inexpensive approximation of the truth. As the name implies, the sample is

selected because they are convenient. This nonprobability method is often used during

preliminary research efforts to get a gross estimate of the results, without incurring the

cost or time required to select a random sample.

43

CHAPTER 5: METHODOLOGY

5.1 AREAS UNDER COVERAGE:

The field study was done in two main cities in Tamilnadu with a sample size of 600:

PLACE SAMPLE SIZECHENNAI 300

COIMBATORE 300

Main Areas covered in the cities are:

CHENNAI COIMBATORE

Nungambakkam Ramanathapuram

Kodambakkam Nanjundapuram

Egmore Singanallur

Tnagar Gandhi Puram

Bezant nagar Ram Nagar

Ashok Nagar R S Puram

Crompet Ganapathy

Thambaram Selva Puram

Chetpat Town Hall

Choolaimedu Citra

Mount Road Race Course

Santhome Sungam

Anna nagar Pothanur

West Mamblam Peelamedu

Adayar Krishna colony

5.2 OBSERVATIONS:

44

• Agarbathi users prefer mild odor because, the users suffer from headache,

asthma & vcing problems.

• Local brand aggarbathis are sold door to door at cheaper prices.

• People expect more no of schemes to be offered.

• 10 % of users don’t even know what brand of agarbathi they use.

• 13% users feel that Mangaldeep has very strong fragrance.

•

5.3 HYPOTHESIS:

• The advertising of cycle (3 in 1) does not affect the sales of Mangaldeep (5 in 1)

• Mangaldeep (5 in 1) fragrance is not as strong as cycle 3 in 1.

• Advertising does not have an impact on purchase intention for Mangaldeep 5 in 1

• Pricing of Mangaldeep 5 in 1 does not affect its sales.

• Packaging of Mangaldeep 5 in 1 has no impact on its sales.

• Consumers of Mangaldeep never shift to cycle 3 in 1 • Consumers of cycle 3 in 1 never shift to Mangaldeep 5 in 1.

• Mangaldeep 5 in 1 consumers are more satisfied with the product than the consumers of cycle 3 in 1.

• Product awareness is low for Mangaldeep 5 in 1 than cycle 3 in 1

• Brand name does not have an impact on sales of Mangaldeep 5 in1.

CHAPTER 6 FINDINGS

45

6.1 RESULTS OF THE SURVEY:

0

5

10

15

20

25

30

% AWARE

1 2

CHENNAI COIMBATORE

BRAND AWARENESS

CHENNAI

COIMB ATORE

0 5 10 15 20 25 30

% US AGE

1

2

CIT

IES

B R AN D USAGE

46

0

5

1 0

1 5

2 0

2 5

3 0

% A W AR E

1 2

C HEN N A I C O IMB A TO R E

A W A R EN ES S A B O U T ITC

12

CHENNAI

COIMBATORE

58

59

60

61

62

63

64

% A

WA

RE

CITIES

AWARENESS ABOUT SCHEMES

Percentage shifted from Mangaldeep to Cycle:

47

At Chennai:

At Coimbatore:

Percentage shifted from Cycle to Mangaldeep:

48

Shifted From Mangaldeep To Cycle

Shifted to Cycle 17%

Not Shifted fromMangaldeep 83%

S H I F T E D F R O M M A N G A L D E E P T O C Y C L E

S h i f t e d t o C y c l e 1 4 %

M a n g a l d e e p, 8 6 %

At Chennai:

Shifted From Cycle To Mangaldeep

Shifted to ,15%Mangaldeep

Not shifted ,85%From Cycle

At Coimbatore:

6.1.1 REASONS BEHIND SHIFTING OF BRANDS:

Why are the users shifting from Mangaldeep to Cycle?

49

S H IF T E D F R O M C Y C L E T O M A N G A L D E E P

S h i f t e d t o m a n g a l d e e p , 4 1 %

C y c l e , 5 9 %

• When they get offers in cycle

• when they get attracted by the add of cycle

• When they get an purchase intention by the add

• When they feel that fragrance of cycle is better than Mangaldeep

Why are users shifting from Cycle to Mangaldeep?

• When the product is at a offer period

• When the users feel that Mangaldeep has a better fragrance

• When they have choice of products.

• When there are not particular about brands.

6.1.2 REASONS BEHIND NOT USING MANGALDEEP

NOT AWARE ABOUT MANGALDEEP

SATISFIED WITH THE CURRENT BRAND

BUY WHICHEVER IS AVAILABLE

NOT PARTICULAR ABOUT BRANDS

0

20

40

60

80

N O O F P ER S O N S

R EA S O N S

R E S O N S F O R N O T U S I N G M A N G A L D E E P

S e rie s 1 78 46 29 13

1 2 3 4

50

6.1.3 Statistics about Chennai:

• 28% of users use Mangaldeep out of which 15% are users shifted from cycle

to Mangaldeep

• 16 % of the users have again shifted back to cycle from Mangaldeep

• 29 % are aware about Mangaldeep whereas 95 % were aware about cycle.

• 23 % of users aware about ITC

• 64 % were aware about the schemes offered by Mangaldeep

6.1.4 Statistics about Coimbatore:

• 20% of users use Mangaldeep out of which 41% are users shifted from cycle to

Mangaldeep

• 14 % of the users have again shifted back to cycle from Mangaldeep

• 23 % are aware about Mangaldeep whereas 100 % were aware about cycle.

• 20 % of users aware about ITC

• 60 % were aware about the schemes offered by Mangaldeep

6.1.5 FRAGRANCE OF CYCLE VS MANGALDEEP

Fragrance of Mangaldeep:

51

FR A G R A N C E O F M A N G A L D EEP

St r o n g , 3 7 %

M ild, 4 1 %

Ve r y St r o n g , 2 2 %

Fragrance of Cycle:

CHAPTER 7 ANALYSIS OF SPSS

7.1 REGRESSION BETWEEN AGE & PURCHASE MADE:

H0: The purchase of mangaldeep is not dependent on the age of customer.

52

FR A G R A N C E O F C Y C L E

S t ro n g , 1 8 %

M ild , 8 2 %

H1 : The purchase of mangaldeep is dependent on the age of customer

Variables Entered/Removed(b)

Model Variables Entered Variables Removed Method

1 age(a) . Enter

A All requested variables entered.

b Dependent Variable: purchase_made

Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .63 .3969 .35 1.155

a Predictors: (Constant), age

Coefficients(a)

Unstandardized Coefficients Standardized Coefficients

Sig.

Model B Std. ErrorBeta

1(Constant) 1.758 .159 .000

Age 1.132E-02 .005 .129 .86

a Dependent Variable: purchase_made

We can conclude from the above tables that the age is not a factor that affects the buying behavior. So therby regardless of age people’s preferences do not change.

7.2 STICKS PER USE & PURCHASE MADE

H0: The purchase made is not dependent on the sticks per useH1: The purchase made is not dependent on the sticks per use

53



1 sticks per use(a) . Enter

a All requested variables entered.


Model Summary


1 .67 .448 .39 1.01

a Predictors: (Constant), sticks per use

Coefficients(a)


Sig.


1(Constant) 1.458 .144 .000

sticks per use 1.01 .145 .38 .89


From the study made, we can conclude that there is a small relation of the purchase behavior with respect to the sticks per use but since there is a positive relation as the sticks per use increase we can expect a rise in the purchase behavior.

7.3 USAGE PER DAY:

H0: The purchase made is not dependent on the usage per day

54

H1: The purchase made is dependent on the usage per day



1 usage per day(a) . Enter



Model Summary


1 .010(a) .000 -.002 1.157

a Predictors: (Constant), usage per day

Coefficients(a)


Sig.


1(Constant) 1.963 .143 .000

usage per day 2.125E-02 .142 .59 .881

This shows the relation between the purchase behavior and usage per day . This also shares the same relation as sticks per use. But is more strongly relate. If the sticks increase the purchase increases.

7.4 AWARENESS OF MANGALDEEP:

H0: The purchase made is not dependent on the awareness of Mangaldeep

55

H1: The purchase made is dependent on the awareness of Mangaldeep



1 Awareness of mangaldeep(a) . Enter



Model Summary


1 .71 .49 .44 1.156

a Predictors: (Constant), awareness of mangaldeep

Coefficients(a)

Unstandardized Coefficients

Standardized Coefficients

Sig.


1

(Constant) 1.969 .058 .000

awareness of mangaldeep

-6.576E-02 .208 .27 .96


Since the awareness is less the people who buy Mangaldeep are less. So awareness is a strong point to be focused on in the sales of the brand.

7.5 AWARENESS OF ITC:

56

H0: The purchase made is not dependent on the awareness of ITCH1: The purchase made is dependent on the awareness of ITC



1 awareness of ITC(a) . Enter



Model Summary


1 .7(a) .49 .45 1.156

a Predictors: (Constant), awareness of ITC

Coefficients(a)


Sig.


1(Constant) 1.934 .054 .000

awareness of ITC .135 .166 .15 .419


ITC has to be linked with Mangaldeep during the awareness campaign. ITC being a company of repute, can exploit its brand image to bring an image for Mangaldeep.

7.6 AWARENESS OF CYCLE:

57

H0: The purchase made is not dependent on the awareness of CycleH1: The purchase made is dependent on the awareness of Cycle



1 awareness of cycle(a) . Enter



Model Summary


1 .62 .384 .37 1.156

a Predictors: (Constant), awareness of cycle

Coefficients(a)


Sig.


1(Constant) 2.059 .280 .000

awareness of cycle -.132 .284 -.019 .642


This shows that people who buy Cycle are the ones who are only aware of the brand. Lesser the awareness of cycle, more the purchase of mangaldeep.

58

7.7 AWARENESS ON SCHEMES:

H0: The purchase made is not dependent on the awareness of schemesH1: The purchase made is dependent on the awareness of schemes



1 awareness of schemes(a) . Enter



Model Summary


1 . 86(a) .007 .73 1.186

a Predictors: (Constant), awareness of schemes

Coefficients(a)



Sig.


1

(Constant) 1.926 .108 .000

awareness of schemes

-.150 .189 .11 .428


This shows a relation such that when there are better schemes offered, more purchase will be made for the Mangaldeep.

59

7.8 FRAGRANCE OF MANGALDEEP:

H0: The purchase made is not dependent on the fragrance of MangaldeepH1: The purchase made is dependent on the fragrance of Mangaldeep



1 fragrance of mangaldeep(a) . Enter



Model Summary


1 .176(a) .031 .028 1.172

a Predictors: (Constant), fragrance of mangaldeep

Coefficients(a)



Sig.


1

(Constant) 2.450 .145 .000

fragrance of mangaldeep

-.265 .082 .38 .781

a Dependent Variable: purchase made

Fragrance is not affecting the purchase behavior of Mangaldeep much, because people are rather happy with the fragrance.

60

7.9 SUMMARY:

Coefficients

Dependent Variable: purchase_made



Sig.

Model B Std. Error Beta1 (Constant) 2.636 .686 .000 age 1.132E-02 .005 .129

.86 sticks per

use-9.167E-02 .141 .38 .817

usage per day

2.125E-02 .142 .59 .881

awareness of mangaldeep

.208 .27 .753

awareness of ITC

.135 .166 .15 .419

awareness of cycle

-.161 .324 -.030 .621

awareness of schemes

-.150 .189 .11 .428

fragrance of mangaldeep

-.265 .082 .38 .781

61

CHAPTER 8 RECOMMENDATIONS & SUGGESTONS

• Lack of awareness is a major problem which stops us to take a lead, so I would

suggest that intensive advertising promotion should be made i.e. Attack the

leader by increasing expenditures on advertising and promotion It makes sense

only when the add is far superior that the competitors

• Advertising can be done in all mediums like TV, Radio, and Magazines. .etc .On

the whole effective advertising in the media is necessary. The advertisement

should develop a purchase intension in the minds of the viewers

• To make the buyers more loyal towards the brand, give more discounts and offers

For e.g. :if u can give a coupon inside the pack of Agarbathi, if ten coupons are

collected ,one pack can be given free or any small gifts can be given. Such offers

may develop a brand loyalty towards Mangaldeep

• Product proliferation : introduce the products with lots of variety, this will give

the buyer more choice

For e.g.: New Mangaldeep Tulips.

• Distribution innovation : a new channel of distribution should be selected so that

the product reaches them easily.

• Offer sample packs to all outlets so that the product gains awareness

• Sample packs can also be given with some local magazines which are being sold.

62

CHAPTER 9

9.1 APPENDICE

Questionnaire

Name:

Age:

Address:

.1. Are you a regular user of Aggarbathi?

o Yes o No

2. Are you aware about the brand Mangaldeep 5 in 1?

o Yes o No

3. What brand of Aggarbathi do you use?

o Mangaldeep 5 in 1 o Cycle 3 in 1

63

o If others please specify:

4. How often do you buy Agarbathis?

o Monthly onceo Monthly twiceo Weekly once

5. How many Agarbathis do you light together?

o One at a time o Two to five o Five or more

6. How many times do you light Agarbathis in a day?

o Daily onceo Daily twice o Two or more times

7. What is the best about the product Mangaldeep 5in 1

o Varietyo Qualityo Fragranceo Pricing

8. Do you purchase Mangaldeep 5 in 1 because of its brand name ITC?

Yes No

9. Do you purchase Mangaldeep 5 in 1 only at special schemes, offers and promotion packages?

Yes No

64

10. Rate the following brands in the 5 point scale:

For Mangaldeep 5 in 1:

High 5 4 3 2 1 low

Quality Quality

Quantity Quantity

Pricing Pricing

Advertising Advertising

Packaging Packaging

Fragrance Fragrance

11. Have you shifted from cycle 3 in 1 to Mangaldeep 5 in 1? If so why?

o 5 in 1 has additional fragranceo Quality is bettero Quantity is moreo Brand name

If other reasons please specify:

12. I purchase Mangaldeep 5 in 1 because of the,

65

o Brand name o Quality o Quantityo Packagingo Advertising

13. Rate the following brands in the 5 point scale: For cycle 3 in 1:

High 5 4 3 2 1 low

Quality Quality

Quantity Quantity

Pricing Pricing

Advertising Advertising

Packaging Packaging Fragrance Fragrance

14. Have you shifted from Mangaldeep 5 in 1 to cycle 3 in 1? If so why?

o 3 in 1 has better fragrance o Quality is bettero Quantity is moreo Brand name


15. I buy cycle 3 in 1 because,

o Brand name

66

o Quality o Quantityo Packagingo Advertising

16. Choose the brand according to characteristics mentioned below Cycle 3 in 1 vs Mangaldeep 5 in 1

17. Are you aware about the special packages offered by Mangaldeep?

Parachute oil free with Mangaldeep Jar scheme Others

18. When you purchase Agarbhathi on what basis you select your brand?

o Which ever is cheaper

67

Quality

Quantity Fragrance

Pricing

Packaging

Brand name

Advertising

FEATURES MANGALDEEP 5 IN 1 CYCLE 3 IN 1

o One with strong fragranceo One which has more number of stickso Buy whichever is availableo Because of shopkeepers recommendationo Buy according to your perception

19. Rate the following brands according to your perception:

20. What is your most preferred fragrance type in Mangaldeep?

o Jasmineo sandalo Roseo 5 in 1o 3 in 1o Yantra

21. What do think about the fragrance of various brands?

68

Agarbhathi Excellent VGood Good Average Bad VBad

CYCLE 3 IN 1

MANGALDEEP 5 IN 1

NANDHI

PADMINI

PARIMAL

If you are an non user of mangaldeep then,

22. What stops you from trying out Mangaldeep 5 in 1?

o Satisfied with the current brand o Not aware about the brand o Non-availability of the brand


23. Are you aware about the mangaldeep 5 in 1 advertisement, if yes? What do you feel about the add?

o Simple and meaningfulo Gives a strong impression about the brando Does not create any impact on the brando Does not convey any meaning

24. Rank the following brands from 1 to 5:

69

AGARBATHI

CYCLE 3 IN 1

MANGALDEEP5 IN 1

NANDHI

PADMINI

PARIMAL

LIGHT MILD STRONG VSTRONG

9.2 References:

1. Brand Extension and Customer Loyalty. By: Weizhong Jiang; Dev, Chekitan S.;

Rao, Vithala R.. Cornell Hotel & Restaurant Administration Quarterly, Aug2002,

Vol. 43 Issue 4, p5, 12p, 3 charts, 2 graphs, 3bw; Abstract: Focuses on the brand

extensions embraced by lodging chains in the U.S. Emphasis on the customer loyalty

to inhibit the loss of customers to competitors; Analysis on the brand-switching

behavior of consumers; Aims to encourage consumer retention through brand

extension.

2. KNOW YOU COMPETITION. By: Berg, Joel. njbiz, 1/22/2007 Supplement, p24-

24, 1p; Abstract: The article profiles Jinsoo Kim, president and chief executive officer

of Image Solutions Inc. based in Whippany, New Jersey. In 1992, he started his own

business. Moreover, his educational background in the field of management is

discussed. The difficulties experienced by the company are cited. Moreover, the

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business.

3. Subject Terms: *COMPETITION

Title: COMPETITOR ANALYSIS AND DEFENSES IN THE MARKETPLACE.

Authors: Yihua Philip Sheng [email protected]

70

Mangaldeep 5 in 1 Cycle 3 in 1 NandiPadminiParimal

http://web.ebscohost.com/ehost/viewarticle?data=dGJyMPPp44rp2%2FdV0%2Bnjisfk5Ie46bVJt6eySa6k63nn5Kx95uXxjL6srUqvpbBIrq2eTLiorlKypp5Zy5zyit%2Fk8Xnh6ueH7N%2FiVbSnsVC1rLJLs5zqeezdu33snOJ6u9j1gKTq33%2B7t8w%2B3%2BS7SrGvr0yvr7U%2B5OXwhd%2Fqu37z4ups4%2B7y&hid=13

http://web.ebscohost.com/ehost/viewarticle?data=dGJyMPPp44rp2%2FdV0%2Bnjisfk5Ie46bVJt6eySa6k63nn5Kx95uXxjL6srUqvpbBIrq2eTLiorlKypp5Zy5zyit%2Fk8Xnh6ueH7N%2FiVbSnsVC1rLJLs5zqeezdu33snOJ6u9jzgKTq33%2B7t8w%2B3%2BS7T7KqrlCxqqR%2B7ejrefKz5I3q4tJ99uoA&hid=13

Mykytyn, Jr., Peter P.1 [email protected]

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Document Type: Article

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Authors: Fahey, Liam

Source: Strategy & Leadership; 2002, Vol. 30 Issue 6, p5, 8p


Subject Terms: *COMPETITION

5. Title: Competitor Identification and Competitor Analysis: A Broad-Based

Managerial Approach.

Authors: Bergen, Mark

Peteraf, Margaret A.

Source: Managerial & Decision Economics; Jun-Aug2002, Vol. 23 Issue 4/5, p157-

169,

13p, 1 chart, 1 diagram



6. Title: Information Security as Response to Competitor ANALYSIS SYSTEMS.

Authors: Gordon, Lawrence A.1,2 [email protected]

Loeb, Martin P.3 [email protected]

Source: Communications of the ACM; Sep2001, Vol. 44 Issue 9, p70-75, 6p


7. Title: How consistent are winning strategies? The role of competitor analysis

and budgets on performance in a simulation.

71

Authors: Neal, Derrick J.

Source: Simulation & Gaming; Jun99, Vol. 30 Issue 2, p118, 14p, 5 charts


Subject Terms: *MANAGEMENT -- Simulation methods

*MARKETING

8. Title: Competitor Analysis Practices of US Companies: An Empirical Investigation.

Authors: Subramanian, Ram1

IsHak, Samir T.1

Source: Management International Review (MIR); 1998 1st Quarter, Vol. 38 Issue 1,

p7-23, 17p, 10 charts


Subject Terms: *BUSINESS

9. Title: COMPETITOR ANALYSIS AND INTERFIRM RIVALRY:

THEORETICAL INTEGRATION.

Authors: Ming-Jer Chen1

Source: Academy of Management Review; Jan1996, Vol. 21 Issue 1, p100-134,


10. Title: Know Your Enemy - Competitor Analysis for Success.

Source: Industrial & Commercial Training; 1995, Vol. 27 Issue 1, preceding pviii-

viii,

1/2p

Document Type: Entertainment Review


72

11. Title: BLIND SPOTS IN INDUSTRY& COMPETITON

ANALYSIS:IMPLICATIONS INTERFIRM PERCEPTIONS FOR STRATEGIC

DECISIONS.

Authors: Zajac, Edward J.1

Bazerman, Max H.1

Source: Academy of Management Review; Jan1991, Vol. 16 Issue 1, p37, 20p, 1

diagram


12. Title: ORGANIZING COMPETITOR ANALYSIS SYSTEMS.

Authors: Ghoshal, Sumantra

Westney, D. Eleanor1

Source: Strategic Management Journal; Jan91, Vol. 12 Issue 1, p17-31, 15p



13. Title: THINKING ONE STEP AHEAD: THE USE OF CONJECTURES IN

COMPETITOR ANALYSIS.

Authors: Amit, Raphael1

Domowitz, Ian2

Fershtman, Chaim3

Source: Strategic Management Journal; Sep-Oct88, Vol. 9 Issue 5, p431-442, 12p


14. Title: Competitor Analysis: Some Practical Approaches.

Authors: Brock, John J.1

Source: Industrial Marketing Management; Oct84, Vol. 13 Issue 4, p225-231, 7p

73


15. Title: COMPETITOR ANALYSIS IN HEALTH CARE MARKETING.

Authors: Salvatore, Tony1

Source: Journal of Health Care Marketing; Fall84, Vol. 4 Issue 4, p11-16, 6p


16. Title: Competitor analysis--A prize-centered approach.

Authors: Oxenfeldt, Alfred R.

Moore, William L.

Source: Management Review; May81, Vol. 70 Issue 5, p23, 7p


17. Title: Competitor analysis: The missing link in the strategy.

Authors: Rothschild, William E.

Source: Management Review; Jul79, Vol. 68 Issue 7, p22, 10p


18. www.itc.in

74

http://www.itc.in/

47453984 agarbathi project

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