anam main project.docx

CHAPTER 1 - INTRODUCTION

INTRODUCTION

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1.1 BACKGROUND

The ultimate objective of all production is consumption for the satisfaction of varied needs of

man. A free market economy provides freedom to the consumers to buy and consume goods

of their choice. Buying preferences of the consumers send signals to the producers to produce

various commodities in required quantities. Producers, therefore, produces only those

commodities which are desired by the consumers. Consumer behaviour is related to likes and

dislikes and expectations of the consumers. Consumer behaviour has changed in recent years

owing to enhanced awareness, information technology and more importantly governmental

intervention through legislations. Thus, the manufacturers are more cautious in dealing with

consumers of their respective products.

In recent years, the lifestyle of a large number of consumers in India has changed

dramatically and the process of change is on. The buying behaviour of the consumers is

influenced by several factors such as socio-economic conditions, cultural environment,

literacy level, occupation, geographical location, efforts on the part of sellers, exposure to

media etc. Consumer behaviour in the market is perplexing because of a singular lack of

consistency in groups which are homogeneous in parameters of demographics-Age,

occupation, education and income.

The study of consumer behaviour implies how & why a particular consumer reacts to the

decisions of producers. It is the study of how individual make decision to spend their

available resources (time, money, effort) on consumption related items. It includes the study

of why they buy it, when they buy it, where they buy it, how often they buy it & how often

they use it.

This study focused on understanding the consumer buying behaviour of pens at retail outlets.

It also focused on the issue that whether the marketing strategies are properly implemented or

not. The study would be beneficial for the ITC Company to formulate the strategy for future.

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DEFINITION

Consumer Buying Behaviour:

The collective actions, including the searching, evaluation, selection, purchasing, consuming,

disposing of products, taken by consumers in determining which goods and services hold the

most value for meeting their wants and needs. Marketers study consumer buying behaviour to

determine the influence of psychological, sociological, demographical, and cultural factors

have on buying decisions.

1.2 SCOPE OF THE STUDY

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

its influencing factors

2. This study will help the company to know about the consumer buying behaviour

pattern of their products

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

4. This study helps the company to improve their strategic formulation and decision

making process

1.3 STATEMENT OF THE PROBLEM

To study the consumer buying behaviour and retailers perceptive of classmate pen with its

competitors

1.4 OBJECTIVES OF THE STUDY

To know about the pen industry.

To study purchases and consumption pattern of pens by the consumers.

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

To know which price range of pens are mostly preferred by the people. To study the impact advertisement on consumers

To know the effectiveness of In-shop advertisement retail outlet

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

target customers.

1.5 LIMITATIONS OF THE STUDY:

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

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

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

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

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

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CHAPTER 2 - INDUSTRY &

COMPANY PROFILE

2.1 INDUSTRY PROFILE

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2.1.1 PROFILE OF PEN INDUSTRY IN INDIA

There has been a need to document through the use of writing instrument since the dawn of

mankind. Pen and pencils continue to be the staples of everyday life and indispensable items

for everyday use. Writing instruments continue to play integral part in the life of particularly

every business, school and household. The advent of computers and related technology has

yet to make writing industry and instruments slow placed and obsolete. In fact the writing

instrument embraces the evolution of technology by incorporating it into new products and

using it to enhance business aspects and client services.

India is the only country after China to have fully fledged writing instruments industry built

purely on the platform of its own domestic market demand. The size of the writing instrument

industry in India is estimated about Rs.1800 Crores of which organized player account for

80% of the market share and the unorganized player for the rest. The industry grew by about

15% in 2004-05 and by 13.5% in 2005-06, largely driven by the growth of organized sector,

indicating that consumer are responding favorably to quality and branding. It is expected that

promotion, easy availability and affordability, branded off make will accelerate and helped

the organized sector eat into unorganized presence.

The Indian writing instruments market today is still on the path of discovering new niches

with ergonomic designed products, promotional marketing items and luxury items but in the

coming years it is bound to grow tremendously not only domestically but also in its exports

emerging as world leaders in Writing Instruments.

India’s writing instrument industry is reserved for the small sector with a statutory limit on

the maximum investment in plant and machinery at Rs 50 crores. As a result critical pen

component like refills are manufactured in house, while all non-critical components are

outsourced.

Most Indian companies cater to the “Value for Money” (i.e. high volume low value strategy)

while international player caters to premiums segment operating through exclusive

distributers. Globally writing instruments industry is estimated at Rs 50000 crores (p.a).

China controls approximately 10% of the global markets while the Indian share had so far

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been mini scale. But given the superior quality perception that “Made in India” pens have

over the Chinese; the buying preference of major retailers has been shifting to Indian

products and brands.

There are over 50 brands In India’s organized and unorganized sectors. With economic

liberalization many premium international brands entered India either independently or in

collaboration with Indian manufacturers and distributors. These includes Reynolds, Parker,

Cross, Mont Blanc, Cartier, Pierre Cardin and other designer pens from Episode, Frazer and

Haws, Christian Dior and waterman. Over the years, the market share flowed from the

unbranded to the branded sector. The market is segmented according to the following target

audience:

Students(many of whom depend only on pencils and ball point pens)

Frequent users(in offices across commercial and public establishments)

Occasional users(housewives and literate manual workers)

While India’s literacy rate is a high 74%, all literates occasionally use ball or fountain pens.

While pen demand among the employed is relatively stagnant, demand among students is

experiencing a healthy growth as this segment is more brands conscious.

The writing instrument market is dominated by ball point pens accounting for 70% of India’s

total pen demand, followed by gel pens at 20% and fountain pens at 4%. 85% of users use

blue, black and red ink.

Category

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Source : - AC Nielsen Report (June 2012)

Table 2.1 Category Break up of Pen User

The above information regarding the writing instrument industry has been obtained from the

public sources like: Business line, Economic Times, Financial Express, some companies

catalog are used along with internet support.

2.1.2 GLOBAL WRITING INSTRUMENT INDUSTRY

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

computerization. The global writing instrument industry is estimated at Rs 65000 crores. (p.a)

where USA markets grew by 5% last year (2005-06) and is expected to grow by the same

proportionate at this time too. China controls approximately 10% of the global market, due to

its manufacturing process. India is becoming most preferred manufacturing destination after

china. Indian product quality is among best in the world, Compared to china mass market

products. Indian market is growing healthily at 15 to 20% and is expected to grow with same

rate for upcoming 2 to3 years (acc CAGR), where the organize sector now controls 70%

market share in 2011 as compared to 54% up to 2000.

2.1.3 MARKET AND MARKET INFORMATION (IN DETAILS)

The worldwide market size for writing industry is Rs 100000 Crores (p.a),where

USA’s market alone is $4.68 Billion Dollars (App Rs 21000 Crores).

China exports of pens are over Rs 5000 Crores (p.a).

India exports of pens are over Rs 200 Crores (p.a).

The annual turnover of the industry in India is now estimated at Rs 2000 Crores per

annum and is expected to increase at an annual growth rate by 15-20% per annum.

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Type % user share

Students 55-60

Commercial

30-25

Multi-level 15-10

About 80% of India’s pen industry revenue comes from pens with a price range of up

to Rs. 15.

A small percentage of pens are priced in the range of Rs. 100-300.

The market for lower price range pens (up to Rs.15) is growing at 7-8% annually; the

mid-range pen market is growing faster at 8-10%.

India is viewed as a quality supplier, where as china as a cheaper and lower quality

products supplier.

Germany, Japan, Taiwan & Korea were hubs for the writing instrument industry, but

due to cast factor manufactured have started shifting to China and India.

Previously Switzerland was the manufacturing center for ball point tips, but now India

is emerging as a major Tip manufacturer satisfying not only Domestic demand but

Global demand also.

2.1.4 REGULATORY REQUIREMENTS

In India as per law, the manufacturing of writing instruments is reserved or falls under the

category of SSI (Small Scale Industry Sector). Thus there is ceiling on investment in plant

and machinery manufacturing process (Max Rs. 50 Crores), excluding mould making as it is

highly capital intensive pert of manufacturing. Of course any EOU (Export Oriented Unit)

does not fall under this purview of SSI.

2.1.5 CHANGING CONSUMER BEHAVIOUR

The purchase of a single pen used to be a considered decision until not too long ago. Today,

most consumers buy multiple pens in a single purchase. Because the consumer would go out

specifically to buy a pen earlier, today most buy along with a number of other things as part

of their monthly provisions. Earlier there was one pen to write, now interestingly even as

communication getting increasing psychological, there is different pen, ink, size of different

moods, needs and situation.

Gone are the days where pen were just considered as merely an item of writing. But now it is

a quasi-fashion statement something that’s aligns with your personality, of course still the pen

purchase decision is considered as low involvement decision.

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28%

72%

Market Break-up

Gel pensBall pens

Chart 2.1: Ball and Gel pen-Market Break-up (value)

20%

80%

Market share

Un organisedOrganised

Chart 2.2: Market share of pen industry

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2.2 COMPANY PROFILE

2.2.1 INTRODUCTION TO THE COMPANY

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

market capitalisation of nearly US $ 30 billion and a turnover of over

US $ 6.1 Billion. ITC is rated among the World's Best Big

Companies, Asia's 'Fab 50' and the World's Most Reputable

Companies by Forbes magazine, among India's Most Respected Companies by Business

World and among India's Most Valuable Companies by Business Today. ITC ranks among

India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and

published by the Economic Times. ITC also ranks among Asia's 50 best performing

companies compiled by Business Week.

2.2.2 HISTORY OF ITC

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

India Limited'. A leased office on Radha Bazar Lane, Kolkata, was the centre of the

Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by

purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road)

Kolkata, for the sum of Rs 310,000. The Company's ownership progressively Indianised, and

the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the

Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes &

Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-

Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the

Company's name were removed effective September 18, 2001.

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration

for ITC's Cigarettes business. It is today India's most sophisticated packaging house.

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

which was rechristened 'ITC-Welcomgroup Hotel Chola'. Since then ITC's Hotels business

has grown to occupy a position of leadership, with over 70 owned and managed properties

spread across India.

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In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards

Limited, which today has become the market leader in India.

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

In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was

changed to Surya Nepal Private Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company

and a major supplier of tissue paper to the cigarette industry. Tribeni Tissues Division was

merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty

Papers Division in November 2002.

In 1990, leveraging its agri-sourcing competency ITC set up the Agri Business Division for

export of agri-commodities. ITC's unique and now widely acknowledged e-Choupal initiative

began in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 9 states covering

over 4 million farmers. ITC's first rural mall, christened 'ChoupalSagaar' was inaugurated in

August 2004 at Sehore. On the rural retail front, 24 'ChoupalSaagars' are now operational in

the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC launched a line of high quality greeting cards under the brand name

'Expressions'. In 2002, the product range was enlarged with the introduction of Gift wrappers,

Autograph books and Slam books. In the same year, ITC also launched 'Expressions

Matrubhasha', a vernacular range of greeting cards in eight languages and 'Expressions

Paperkraft', a range of premium stationery products. In 2003, the company rolled out

'Classmate', a range of notebooks in the school stationery segment.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international

quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive

stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife

evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear

brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's

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

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

Design industry. In 2007, the Company introduced 'Miss Players'- a fashion brand in the

popular segment for the young woman.

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In 2000, ITC spun off its information technology business into a wholly owned subsidiary,

ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area.

ITC's foray into the Foods business is an outstanding example of successfully blending

multiple internal competencies to create a new driver of business growth. It began in August

2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes.

In 2002, ITC entered the confectionery and staples segments with the launch of the brands

mint-o and Candyman confectionery and Aashirvaadatta (wheat flour). 2003 witnessed the

introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast

growing branded snacks category with Bingo! in 2007.

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

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

popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

ITC forayed into the marketing of agarbattis (incense sticks) in 2003 marked the

manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands

include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet,

Sandalwood, Madhur, Sambrani and Nagchampa.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care

products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills

provides a comprehensive grooming regimen with distinct lines for men (InizioHomme) and

women (Inizio Femme). Continuing with its tradition of bringing world class products to

Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos,

Shower Gels and Soaps in September, October and December 2007 respectively. The

Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market

segment at select markets in October 2007 and Vivel De Wills &Vivel range of soaps in

February and Vivel range of shampoos in June 2008.

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

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

Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels,

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Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its

nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and

Stationery.

As one of India's most valuable and respected corporations, ITC is widely perceived to be

dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a

commitment beyond the market". In his own words: "ITC believes that its aspiration to

create enduring value for the nation provides the motive force to sustain growing shareholder

value. ITC practices this philosophy by not only driving each of its businesses towards

international competitiveness but by also consciously contributing to enhancing the

competitiveness of the larger value chain of which it is a part."

ITC's diversified status originates from its corporate strategy aimed at creating multiple

drivers of growth anchored on its time-tested core competencies: unmatched distribution

reach, superior brand-building capabilities, effective supply chain management and

acknowledged service skills in hoteliering. Over time, the strategic forays into new

businesses are expected to garner a significant share of these emerging high-growth markets

in India.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of

the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The

Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its

competitiveness by empowering Indian farmers through the power of the Internet. This

transformational strategy, which has already become the subject matter of a case study at

Harvard Business School, is expected to progressively create for ITC a huge rural distribution

infrastructure, significantly enhancing the Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is

aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including

e-enabled services and business process outsourcing.

ITC's production facilities and hotels have won numerous national and international awards

for quality, productivity, safety and environment management systems. ITC was the first

company in India to voluntarily seek a corporate governance rating.

ITC employs over 26,000 people at more than 60 locations across India. The Company

continuously endeavors to enhance its wealth generating capabilities in a globalising

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environment to consistently reward more than 3,75,000 shareholders, fulfill the aspirations of

its stakeholders and meet societal expectations. This over-arching vision of the company is

expressively captured in its corporate positioning statement: "Enduring Value. For the

nation.For the Shareholder."

2.2.3 ITC’s Product Mix

Cigarettes

ITC is the market leader in cigarettes in India. With its wide range of invaluable

brands, it has a leadership position in every segment of the market. It's highly

popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake,

Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.

The Company has been able to build on its leadership position because of its single

minded focus on value creation for the consumer through significant investments in

product design, innovation, manufacturing technology, quality, marketing and

distribution.

All initiatives are therefore worked upon with the intent to fortify market standing in

the long term. This in turns aids in designing products which are contemporary and

relevant to the changing attitudes and evolving socio economic profile of the country.

This strategic focus on the consumer has paid ITC handsome dividends.

ITC's pursuit of international competitiveness is reflected in its initiatives in the

overseas markets. In the extremely competitive US market, ITC offers high-quality,

value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a

key player in the GCC markets through growing volumes of its brands.

ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger,

Saharanpur and Kolkata. These factories are known for their high levels of quality,

contemporary technology and work environment.

FMCG Foods

ITC made its entry into the branded & packaged Foods business in August 2001 with

the launch of the Kitchens of India brand. A more broad-based entry has been made

since June 2002 with brand launches in the Confectionery, Staples and Snack Foods

segments.

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http://www.kitchensofindia.com/

The packaged foods business is an ideal avenue to leverage ITC's proven strengths in

the areas of hospitality and branded cuisine, contemporary packaging and sourcing of

agricultural commodities. ITC's world famous restaurants like the Bukhara and the

Dum Pukht, nurtured by the Company's Hotels business, demonstrate that ITC has a

deep understanding of the Indian palate and the expertise required to translate this

knowledge into delightful dining experiences for the consumer. ITC has stood for

quality products for over 98 years to the Indian consumer and several of its brands are

today internationally benchmarked for quality.

The Foods business carries forward this proud tradition to deliver quality food

products to the consumer. All products of ITC's Foods business available in the

market today have been crafted based on consumer insights developed through

extensive market research. Apart from the current portfolio of products, several new

and innovative products are under development in ITC's state-of-the-art Product

Development facility located at Bengaluru.

Leadership in the Foods business requires a keen understanding of the supply chain

for agricultural produce. ITC has over the last 98 years established a very close

business relationship with the farming community in India and is currently in the

process of enhancing the Indian farmer's ability to link to global markets, through the

e-Choupal initiative, and produce the quality demanded by its customers. This long-

standing relationship is being leveraged in sourcing best quality agricultural produce

for ITC's Foods business.

The Foods business is today represented in 4 categories in the market. These are:

Ready To Eat Foods

Staples

Confectionery

Snack Foods

In order to assure consumers of the highest standards of food safety and hygiene, ITC

is engaged in assisting outsourced manufacturers in implementing world-class

hygiene standards through HACCP certification. The unwavering commitment to

internationally benchmarked quality standards enabled ITC to rapidly gain market

standing in all its 6 brands:

Kitchens of India

Aashirvaad

Sunfeast

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http://itcportal.com/foods/foods_sunfeast.html

http://itcportal.com/foods/foods_aashirvaad.html

http://itcportal.com/foods/foods_kitchens.html

http://itcportal.com/agri_exports/e-choupal_new.htm

mint-o

Candyman

Bingo!

Lifestyle Retailing

ITC’s Lifestyle Retailing Business Division has established a nationwide retailing

presence through its Wills Lifestyle chain of exclusive specialty stores. Wills

Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work

wear, Wills Sport relaxed wear, Wills Clublife evening wear, fashion accessories and

Essenza Di Wills – an exclusive range of fine fragrances and bath & body care

products and Fiama Di Wills - a range of premium shampoos and shower gels. Wills

Lifestyle has also introduced Wills Signature designer wear, designed by the leading

designers of the country.

With a distinctive presence across segments at the premium end, ITC has also

established John Players as a brand that offers a complete fashion wardrobe to the

male youth of today. The recent launch of Miss Players with its range of trendy

fashion wear for young women has been a successful addition to the youthful

offering. With its brands, ITC is committed to build a dominant presence in the

apparel market through a robust portfolio of offerings.

At Wills Lifestyle, customers can browse at leisure, and shop in a relaxed and

pleasing atmosphere. The use of space is refreshing, which is reflected even in the

spacious changing rooms. Every store offers an international retailing ambience with

the extensive use of glass, steel and granite, reflecting the most contemporary trends

in store design, thereby creating a splendid backdrop for the premium offerings.

Wills Lifestyle was named Superbrand 2009 by the Superbrands Council of

India recently. Wills Lifestyle has been twice declared 'The Most Admired

Exclusive Brand Retail Chain of the Year' at the Images Fashion Awards in 2001

& 2003 as well as 'Most Admired Fashion Brand of the year - Fashion Forward'

in 2009.

Personal Care

In line with ITC's aspiration to be India's premier FMCG company, recognised for its

world-class quality and enduring consumer trust, ITC forayed into the Personal Care

business in July 2005. In the short period since its entry, ITC has already launched an

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http://itcportal.com/foods/foods_bingo.html

http://itcportal.com/foods/foods_mint-o.html

http://itcportal.com/foods/foods_mint-o.html

array of brands, each of which offers a unique and superior value proposition to

discerning consumers. Anchored on extensive consumer research and product

development, ITC's personal care portfolio brings world-class products with clearly

differentiated benefits to quality-seeking consumers.

ITC's Personal Care portfolio under the 'Essenza Di Wills','Fiama Di Wills', 'Vivel

Di Wills' 'VivelUltraPro', 'Vivel' and 'Superia' brands has received encouraging

consumer response and is being progressively extended nationally.

ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene

and benchmarked manufacturing practices. Contemporary technology and the latest

manufacturing processes have combined to produce distinctly superior products which

rank high on quality and consumer appeal.

Extensive insights gained by ITC through its numerous consumer engagements have

provided the platform for its R&D and Product Development teams to develop

superior, differentiated products that meet the consumer's stated and innate needs. The

product formulations use internationally recognised safe ingredients, subjected to the

highest standards of safety and performance.

Education & Stationary products

ITC made its entry into the stationery business in the year 2002 with its premium

range of notebooks, followed in the year 2003 with the more popular range to

augment its offering.

Today, ITC continues to blend its core capabilities to market a growing range of

education and stationery products. These capabilities include,

a. Manufacturer of India’s first Ozone treated environment friendly Elemental

Chlorine Free (ECF) pulp, paper and paperboard.

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

Packaging& Printin Business.

c. Brand Building & Trade Marketing & Distribution strengths resident in its

FMCG Business.

ITC’s stationery Brands are marketed as “Classmate” and “Paperkraft”, with

Classmate addressing the needs of students and Paperkraft targeted towards college

students and executives.

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Classmate - India’s truly largest National brand, reaching 65,000 outlets across the

country, has over 300 variants in its range which comprises notebooks, long books,

practical books, drawing books, scrap books, reminder pads etc.

The Classmate Fun N Learn range of children books targeting pre school learners,

comprising categories like Pre School Learner,Active Minds and Read Aloud Tales

with features like Wipe n Use again, Trace & Color and Puzzles ensure that a child's

first lessons are truly enjoyable.

Classmate Invento Geometry Boxes, launched for school students comprise a world-

class precision compass and high quality plastic instruments coupled with interesting

trivia and useful information, to make geometry more fascinating for students.

Aesthetically designed, Classmate pens offer the consumer a smoother and more

comfortable writing experience through use of ergonomic design, reducing the effort

required for writing. The initial launch comprises ball pens - Classmate Safari and

Classmate Ilet - and gel pens - Classmate Glider and Classmate Octane.

A new entry to the Classmate portfolio is its range of HB Jet Black pencils. Designed

attractively for school kids, the pencils offer a unique advantage of lesser lead wear

out and thus, “Stay Sharper for Longer”.

The Classmate Notebook range builds in regional preferences and caters to the

requirements of All India & State Education Boards. Every Classmate notebook

carries ITC's Corporate Social Responsibility message on its back. For every four

Classmate Notebooks, ITC contributes Re. 1 to its rural development initiative that

supports, among other projects, primary education in villages.

Classmate has successfully run the “Classmate Young Author & Artist Contest”

for 5 years. The contest is a national level event going across 34 cities and getting

participation from 5000 schools.

The Paperkraft range consists of premium stationery with a wide variety for

executives to choose from. The assortment consists of notepads & multi subject

notebooks in hard, soft covers & multiple binding formats including spirals, wiros etc.

The Paperkraftbrand recently launched premium business paper – an environment

friendly multipurpose paper for office and home use. The paper has been crafted by

ITC’s Bhadrachalam unit using a pioneering technology, called “Ozone Treated

Elemental Chlorine Free technology”. Paperkraft business paper is the whitest and

brightest 75 & 70 GSM papers manufactured in India and provides consumers an

opportunity to “Go Green”.

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Safety Matches

As part of its strategic initiative to create multiple drivers of growth in the FMCG

sector, ITC commenced marketing safety matches sourced from the small-scale

sector. The Matches business leverages the core strengths of ITC in marketing and

distribution, brand building, supply chain management and paperboard & packaging

to offer Indian consumers high quality safety matches.

ITC’s range of Safety matches include popular brands like i Kno, Mangaldeep, Aim,

Aim Mega and Aim Metro. With differentiated product features and innovative value

additions, these brands effectively address the needs of different consumer segments.

The Aim brand is the largest selling brand of Safety Matches in India. ITC also

exports regular and premium safety matches brands to markets such as Middle East,

Africa and the USA. The successful acquisition of Wimco Ltd. by Russell Credit Ltd.,

a wholly owned subsidiary of ITC has consolidated the market standing of the

Company's Matches business through synergy benefits derived through combined

portfolio of offerings, improved servicing of proximal markets and freight

optimization. Through its participation, ITC aims to enhance the competitiveness of

the small and medium scale sectors through its complementary R&D based product

development and marketing strengths, especially the breadth and depth of the

Company's trade marketing and distribution.

Agarbattis

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

the Company commenced marketing Agarbattis (incense sticks) sourced from small-scale and

cottage units in 2003. This business leverages the core strengths of ITC in nation-wide

distribution and marketing, brand building, supply chain management, manufacture of high

quality paperboards and the creation of innovative packaging solutions to offer Indian

consumers high quality Agarbattis. With its participation in the business, ITC aims to

enhance the competitiveness of the small and medium scale sectors through its

complementary R&D based product development and strengths in trade marketing and

distribution.

MangaldeepAgarbattis are available in a wide range of fragrances like Rose, Jasmine,

Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.

20

MangaldeepYantra is a special offering from ITC and this specially created

fragrance evokes the ambience of a temple. The premium range from ITC,

MangaldeepSpriha has two offerings, Pratiti and Sarvatra and are specially hand

rolled by Cottage Industries, Sri Aurobindo Ashram, Puducherry. Cottage Industries,

Puducherry, has recently been accredited with IFAT certification, which is an

internationally recognized benchmark for fair trade practices.

Mangaldeep is also available in 3-in-1 and 5-in-1 packs giving the consumer a choice

of multiple fragrances in a single pack. Mangaldeep appeals to a cross-section of

consumers with offerings at various price points. These agarbattis are available in

innovative 'Fragrance-Locked' packaging. 'Fragrance locking' is a unique concept of

packaging which retains the fragrance for a longer period and helps in "Completing

the Purity of Prayer". Mangaldeep is fast emerging as the only national brand in an

industry dominated by multiple local brands.

In line with ITC's Triple Bottom Line philosophy of every business contributing to the

nation's economic, environmental and social capital, Mangaldeepagarbattis are

manufactured by small scale and cottage units, providing livelihood opportunities for

more than 5000 people. Seven out of 10 MangaldeepAgarbatti manufacturing units

are ISO 9000 certified. Mangaldeep ASHA (Assistance in Social Habilitation through

Agarbattis) is an ITC initiative to improve the quality of raw agarbatti production and

provide better value realization for women rollers. Under the project, ITC has

extended support to NGOs in states and like Bihar, Tripura, Tamil Nadu, who are

setting up agarbatti units, training village women in rolling agarbattis and employing

them in these units.

Expressions Aromatic Candles

o Leveraging its deep consumer insight, ITC's Agarbatti business recently

launched "Expressions" Premium Range of Aromatic Candles in India

through Wills Lifestyle Stores. Research on usage and attitude reveals a strong

linkage of candles to attributes like Romance, Decoration and Wellness

(Aromatherapy).

o The Expressions range of Aromatic candles comprises Amour - the Romance

Series, Adora - the Decor Series and Nirvana - the Spa Series. The basis of

segmentation is colour and fragrance - Red for romance, Purple for décor and

21

Green for wellness. The fragrance of the candles have been specially selected

are made from the finest perfumes and oils. Each candle's fragrance, shape and

design are carefully chosen with a distinct sensation and ambience in mind.

Ideal for gifting, Expressions Aromatic Candles promise to soothe, uplift and

transform.

Hotels

ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai,

which was then rechristened ITC Chola. Since then the ITC-Welcomgroup brand has

become synonymous with Indian hospitality. With over 100 hotels in more than 80

destinations, ITC-Welcomgroup has set new standards of excellence in the hotel

industry in Accommodation, Cuisine, Environment and Guest Safety. ITC's Hotels

business is one of India's finest and fastest growing hospitality chains. ITC Hotels'

commitment to delivering globally benchmarked services, embedded in a culture

deeply rooted in India's rich tradition of hospitality, gives it a unique and distinct

identity.

A leader in the premium hospitality segment, ITC Hotels have had the privilege of

hosting world leaders, Heads of State and discerning guests from across the world and

within.

ITC-Welcomgroup pioneered the holistic concept of 'branded accommodation' in the

hospitality industry. It was the first to launch the idea of a 'Hotel within a Hotel' by

segmenting, customizing and branding hotel services like 'ITC One', 'Towers' and the

'Executive Club'. Each of these caters to specialized needs of the global business

traveller with unmatched quality and a range of custom-made services.

Paperboard and Specialty papers

22

ITC’s Paperboards and Specialty Papers Division is India’s largest and most

technologically advanced paper and paperboards business. ITC caters to a wide

spectrum of packaging, graphic, communication, writing, printing and specialty paper

requirements through its four world-class mills in India. Having pioneered many

speciality applications like cigarette tissues, packaging boards, aseptic cartons and

gypsum liners, ITC’s Paperboards and Specialty papers business enjoys market

leadership in the value-added paperboards segment, and also has a significant share of

the Indian paperboards market. It is also the largest Indian exporter of coated boards.

Packaging

ITC's Packaging & Printing Business is the country's largest convertor of

paperboard into packaging. It converts over 50,000 tonnes of paper and paperboard

per annum into a variety of value-added packaging solutions for the food & beverage,

personal products, cigarette, liquor, cellular phone and IT packaging industries. It has

also entered the Flexibles and Corrugated Cartons business.

The Division, which was set up in 1925 as a strategic backward integration for ITC's

Cigarettes business, is today India's most sophisticated packaging house. State-of-the-

art technology, world-class quality and a highly skilled and dedicated team have

combined to position ITC as the first-choice supplier of high value added

packaging.

The Division supplies value-added packaging to the Company's Cigarettes business.

Its client list includes several well-known national and international companies like

British American Tobacco, Philip Morris International, Surya Nepal Private

Limited, VST Industries, UB Group, Nokia, Flextronics, Foxconn, FMC India

Pvt Ltd., PernodRicard, Allied Domecq, Whyte & Mackay, Hindustan Lever,

Tata Tetley, Nestle and Reckitt Benkiser India Limited, etc.

With all the three factories at Tiruvottiyur near Chennai, Munger in Bihar and

Haridwar in Uttarakhand certified to ISO 9001, ISO 14001 and OHSAS 18001,

the Company offers a comprehensive product range in packaging:

Flip-top boxes Display outers Shells and Slides Soft cup and strap Labels

Bundle Wraps Flap boxes Inner Frames Coupon Inserts Folding Cartons

Fluted Cartons Shoulder Boxes Pre-printed cork tipping Flexibles

Packaging

23

ITC occupies a leadership position in cigarette and liquor packaging in India. It

supplies packaging to cover 70 billion cigarettes a year domestically, and supplies

packaging for 15 billion cigarette sticks a year for the export market. It is the largest

supplier of liquor mono cartons in the country.

ITC has enhanced the value of some of the most favoured brands with superior look-

and-feel packaging, using the best raw materials and process combinations, and an in-

house pre-press Design Centre.

A Product Introduction Process team pioneers packaging innovations. The team uses a

unique process to pilot the client's packaging through its manufacturing system.

Specifications are evolved based on clients' needs. Corresponding to the

specifications, a variety of packaging solutions is then generated. The efficacy of the

packaging is tested simulating the client's factory conditions.

2.2.4 VISION OF THE COMPANY

Sustain ITC's position as one of India's most valuable corporations through world class

performance, creating growing value for the Indian economy and the Company’s

stakeholders.

2.2.5 MISSION OF THE COMPANY

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

delivering superior and sustainable stakeholder value.

2.2.6 ITC’s CORE VALUES

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

organisation which creates value for all its stakeholders:

Trusteeship

As professional managers, we are conscious that ITC has been given to us in "trust" by all

their stakeholders. ITC actualise stakeholder value and interest on a long-term sustainable

basis.

Customer Focus

24

ITC is always customer focused and will deliver what the customer needs in terms of value,

quality and satisfaction.

Respect For People

ITC is result oriented, setting high performance standards as individuals and teams. ITC

simultaneously respect and value people and uphold humanness and human dignity. ITC

acknowledge every individual brings different perspectives and capabilities to the team and

that a strong team is founded on a variety of perspectives. ITC want individuals to dream,

value differences, create and experiment in pursuit of opportunities and achieve leadership

through teamwork.

Excellence

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

Innovation

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

practices.

Nation Orientation

ITC is aware of their responsibility to generate economic value for the Nation. In pursuit of

their goals, ITC will make no compromise in complying with applicable laws and regulations

at all levels.

ITC’s Philosophy

ITC believes in practicing ethical behaviour among the corporate citizen. The company

follows an HR policy that is regulated by Teamwork, Trust, Collaboration, Mutuality,

Meritocracy, Objectivity, Collaboration, Self-respect and Human-dignity. It is also deeply

committed to make the company a gender friendly place for each individual while also

ensuring enhancement of equal opportunities for men and women, preventing sexual

harassment of any form and the adherence to good employment practices. It is ensured that

the interest of the company is foremost and in this context acceptance of any kind of gifts or

payments from suppliers or customers is viewed as a serious breach of company discipline.

And such acts are also considered as damaging to the reputation of the company.

High standards of house keeping and hygiene are followed to ensure excellent physical

working conditions. It is understood that all the directors, senior management and employees

shall conduct themselves in an honest manner and avoid any conflict of interest.

25

The top officials and employees of ITC believe that ITC provides them freedom at work and

resources to experiment. Employees take pride in working for ITC for its work culture,

environment, and the way people are treated. They are consulted before a new project\system

is introduced and their concerns and suggestions addressed. ITC also gives a lot of input to

develop their skill and career. They give utmost importance to equal opportunities, better

work environment.

2.2.7 CERTIFICATION OF ITC

ITC constantly endeavors to benchmark its products, services and processes to global

standards. The Company's pursuit of excellence has earned it national and international

honors. ITC is one of the eight Indian companies to figure in Forbes A-List for 2004,

featuring 400 of "the world's best big companies". Forbes has also named ITC among

Asia's'Fab 50' and the World's Most Reputable Companies

ITC is the first Indian company and the second in the world to win the prestigious

Development Gateway Award. It won the $100,000 Award for the year 2005 for its

trailblazing ITC e-Choupal initiative which has achieved the scale of a movement in rural

India. The Development Gateway Award recognizes ITC's e-Choupal as the most exemplary

contribution in the field of Information and Communication Technologies (ICT) for

development during the last 10 years. ITC e-Choupal won the Award for the importance of its

contribution to development priorities like poverty reduction, its scale and replicability,

sustainability and transparency.

ITC has won the inaugural 'World Business Award', the worldwide business award

recognizing companies who have made significant efforts to create sustainable livelihood

opportunities and enduring wealth in developing countries. The award has been instituted

jointly by the United Nations Development Programme (UNDP), International Chamber of

Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum

(IBLF).

26

ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate Triple

Impact Award in 2007 for its invaluable contribution to the triple bottom line benchmarks of

building economic, social and natural capital for the nation.

ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in

2007, the Award for ‘CSR in Emerging Economies 2005’ and ‘Excellence in Corporate

Governance' in the same year. These Awards have been instituted by the Institute of

Directors, New Delhi, in association with the World Council for Corporate Governance and

Centre for Corporate Governance

ITC's cigarette factory in Kolkata is the first such unit in India to get ISO 9000 quality

certification and the first among cigarette factories in the world to be awarded the ISO 14001

certification

ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO 14001

Environment Management Systems certification.

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

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

the world.

ITC's Green Leaf Threshing plant in Chirala is the first in India and among the first 10

units in the world to bag the Social Accountability (SA 8000) certification

ITC Chairman Y C Deveshwar has received several honors over the years. Notable among

them are:

Year Award

2007 SAM/SPG Sustainability Leadership Award conferred at the

27

International Sustainability Leadership Symposium, Zurich.

2006 Business Person of the Year from UK Trade & Investment, the UK

Government organisation that supports overseas businesses in that

country.

2006 Inducted into the `Hall of Pride' by the 93rd Indian Science Congress

2005 Honoured with the Teacher's Lifetime Achievement Award

2001 Manager Entrepreneur of the Year from Ernst & Young Retail

Visionary of the Year from Images, India's only fashion and retail

trade magazine

1998 Honorary Fellowship from the All India Management Association

1996 Distinguished Alumni Award from IIT, Delhi

1994 Marketing Man of the Year from A&M, the leading marketing

magazine

1986 Meridien Hotelier of the Year

ITC has won the 'Enterprise Business Transformation Award' for Asia Pacific (Apac),

instituted by Infosys Technologies and Wharton School of the University of Pennsylvania for

its celebrated e-Choupal initiative.

ITC is the only Indian FMCG Company to have featured in the Forbes 2000 list. The

Forbes 2000 is a comprehensive ranking of the world's biggest companies, measured by a

composite of sales, profits, assets and market value. The list spans 51 countries and 27

industries.

ITC continues its dominance of The Economic Times' Brand Equity listing of India's 100

Biggest FMCG Brands, with three brands from its stable making it to the top five. Gold Flake

remains India's biggest FMCG brand in terms of sales. Navy Cut ranks at No. 4. ITC's

Scissors brand ranks at No 5 and is the only new entrant into the top 10.

Restaurant magazine has chosen Bukhara at the ITC Maurya, New Delhi as the best Indian

restaurant in the world and the best restaurant in Asia. Bukhara has also been adjudged one of

the top 50 restaurants in the world by the London based magazine 'The Good Food Guide'.

Bukhara is the only South Asian restaurant to figure in the list.

28

ITC's Lifestyle Retailing Business Division (LRBD) has won the "Best Supply Chain

Practices Award" for time-effective and cost-efficient Logistics Management in Organized

Retail. The awards were organized by Retailers Association of India (RAI) in association

with ITW Signode - the International leaders in packaging solutions.

29

CHAPTER -3

REVIEW OF LITERATURE

3.1Consumer Buying Behaviour

30

Definition of Buying Behaviour:

Buying Behaviour is the decision processes and acts of people involved in buying and using

products.

Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer. A firm

needs to analyze buying behaviour for:

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

success.

The marketing concept stresses that a firm should create a Marketing Mix (MM) that

satisfies (gives utility to) customers, therefore need to analyze the what, where, when

and how consumers buy.

Marketers can better predict how consumers will respond to marketing strategies.

3.2 Stages of the Consumer Buying Process

Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual

purchasing is only one stage of the process. Not all decision processes lead to a purchase. All

consumer decisions do not always include all 6 stages, determined by the degree of

complexity

The 6 stages are:

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

and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger

stimulates your need to eat..

2. Information search--

o Internal search, memory.

o External search if you need more information. Friends and relatives (word

of mouth). Marketer dominated sources; comparison shopping; public

sources etc.

A successful information search leaves a buyer with possible alternatives, the evoked

set.

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

buyer wants or does not want. Rank/weight alternatives or resume search..

31

http://www.udel.edu/alex/chapt1.html#mix

Information from different sources may be treated differently. Marketers try to

influence by "framing" alternatives.

4. Purchase decision--Choose buying alternative, includes product, package, store,

method of purchase etc.

5. Purchase--May differ from decision, time lapse between 4 & 5, product

availability.

6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive

Dissonance, have you made the right decision. This can be reduced by warranties,

after sales communication etc.

3.3 Types of Consumer Buying Behaviours

Types of consumer buying behaviour are determined by:

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

product in a particular situation.

Buyers level of involvement determines why he/she is motivated to seek information

about a certain products and brands but virtually ignores others.

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

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

Personal risk

Social risk

Economic risk

The four type of consumer buying behaviour are:

Routine Response/Programmed Behaviour--buying low involvement frequently

purchased low cost items; need very little search and decision effort; purchased

almost automatically. Examples include soft drinks, snack foods, milk etc.

Limited Decision Making--buying product occasionally. When you need to obtain

information about unfamiliar brand in a familiar product category, perhaps. Requires

a moderate amount of time for information gathering. Examples include Clothes--

know product class but not the brand.

32

Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or

infrequently bought products. High degree of economic/performance/psychological

risk. Examples include cars, homes, computers, education. Spend a lot of time seeking

information and deciding.

Impulse buying, no conscious planning.

3.4 Categories that Affect the Consumer Buying Decision Process

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

1. Personal

2. Psychological

3. Social

Personal

Unique to a particular person.Demographic Factors. Sex, Race, Age etc.Who in the family is

responsible for the decision making. Young people purchase things for different reasons than

older people.

Psychological factors

Psychological factors include:

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

toward satisfying a need or achieving a goal. Actions are effected by a set of motives,

not just one. If marketers can identify motives then they can better develop a

marketing mix.

Physiological

o Safety

o Love and Belonging

o Esteem

o Self-Actualization

Need to determine what level of the hierarchy the consumers are at to determine what

motivates their purchases.

33

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http://www.udel.edu/alex/chapt6.html#psychological

http://www.udel.edu/alex/chapt6.html#personal

Perception- Perception is the process of selecting, organizing and interpreting

information inputs to produce meaning. Information inputs are the sensations received

through sight, taste, hearing, smell and touch

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

changes in a person's behaviour caused by information and experience. Therefore to

change consumers' behaviour about your product, need to give them new information

about the product...free sample etc.

Attitudes-Knowledge and positive and negative feelings about an object or activity-

maybe tangible or intangible, living or non- living...Attitudes and attitude change are

influenced by consumers personality and lifestyle. Consumers screen information that

conflicts with their attitudes. Distort information to make it consistent and selectively

retain information that reinforces our attitudes. There is a difference between attitude

and intention to buy (ability to buy).

Personality-all the internal traits and behaviours that make a person unique,

uniqueness arrives from a person's heredity and personal experience Traits effect the

way people behave. Marketers try to match the store image to the perceived image of

their customers. There is a weak association between personality and Buying

Behaviour, this may be due to unreliable measures. Nike ads. Consumers buy

products that are consistent with their self-concept.

Lifestyles-Lifestyles are the consistent patterns people follow in their lives.

Social Factors

34

Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family,

reference groups, social class and culture.

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

actually use (pay) spokespeople to market their products. Michael Jordon (Nike,

McDonalds, Gatorade etc.)

Roles and Family Influences-Role...things you should do based on the expectations

of you from your position within a group.

People have many roles

Husband, father, employer/ee. Individuals role are continuing to change therefore

marketers must continue to update information.

Reference Groups-Individual identifies with the group to the extent that he takes on

many of the values, attitudes or behaviours of the group members.Families, friends,

sororities, civic and professional organizations.Any group that has a positive or

negative influence on a persons attitude and behaviour.The degree to which a

reference group will affect a purchase decision depends on an individuals

susceptibility to reference group influence and the strength of his/her involvement

with the group.

Social Class-An open group of individuals who have similar social rank. US is not a

classless society. US criteria; occupation, education, income, wealth, race, ethnic

groups and possessions. Social class determines to some extent, the types, quality,

quantity of products that a person buys or uses. Lower class people tend to stay close

to home when shopping, do not engage in much prepurchase information gathering.

Stores project definite class images.Family, reference groups and social classes are all

social influences on consumer behaviour. All operate within a larger culture.

Culture and Sub-culture-Culture refers to the set of values, ideas, and attitudes that

are accepted by a homogenous group of people and transmitted to the next

generation.Culture also determines what is acceptable with product advertising.

Culture determines what people wear, eat, reside and travel. Cultural values in the US

are good health, education, individualism and freedom. In american culture time

scarcity is a growing problem. IE change in meals. Big impact on international

marketing.Different society, different levels of needs, different cultural values.

Culture can be divided into subcultures:

35

http://www.udel.edu/alex/chapt19.html#spokesperson

o geographic regions

o human characteristics such as age and ethnic background.

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

36

CHAPTER 4

RESEARCH METHODOLOGY

RESEARCH

37

Research is a process in which the researcher wishes to find out the end result for a

given problem and thus the solution helps in future course of action. The research has been

defined as “A careful investigation or enquiry especially through search for new fact in any

branch of knowledge”.

4.1 RESEARCH METHODOLOGY

The procedure using, which researchers go about their work of describing, explaining

and predicting phenomena, is called Methodology. Methods compromise the procedures used

for generating, collecting, and evaluating data. Methods are the ways of obtaining

information useful for assessing explanation.

4.2 RESEARCH DESIGN

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

Degree of research question: Exploratory study is done for the study of consumer

buying behaviour

Time Dimension: The study was done using Cross Sectional method(As the Study is done only once in the pre specified period of 8 weeks, longitudinal study was not possible).

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

has effectively used both open ended and close ended questions

Method of Data Collection

The data has been collected in two ways.

Primary Data: Primary data are those, which are collected for the first time, and they

are original in character. A suitable combination of Questionnaire techniques, &

discussion with the respondents was used to collect the required primary data.

Primary data gives higher accuracy and facts, which is very helpful for any research

and its findings.The researcher has collected primary data from questionnaire (i.e.)

personal interview.

Secondary Data: - The secondary data are those, which are already collected by

someone for some purpose and are available for the present study. Secondary data

was collected from the magazines, websites, and other such sources.

Sampled Population

38

A population is a group of individuals, object or items from which samples are taken for

measurement. All items in any field of enquiry constitute the universe. Here population

refers to the number of consumers and retailers who are using and selling various pens.

The sample population includes people from various categories like Business Person,

Service Person, Student, Housewife's Etc.

Sampling Area

Is the place where the sample is drowned. Here the researchers take samples from various

parts of Kottayam districts in Kerala

Sample Size

The number of sampling unit selected from the Population is called the size of the sample.

The sample size selected was 100 for consumer’s survey and 50 for retailer’s survey

Sampling technique

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

the sampling technique.

4.3 STATISTICAL TOOLS USED

PERCENTAGE METHOD

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

Percentage of Respondent = No. of Respondent x 100

Total no. of Respondent

39

CHAPTER- 5

DATA ANALYSIS AND

INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

40

The Analysis of data involves identifying the relations of quantified information to the

research problem in hand. Here percentage analysis is the tool for analyzing the data and

establishing a relationship between the information gathered and the research problem.

INTERPRETATION

The process of drawing inferences from the analyzed data in a research process is called as

interpretation. It refers to the technique of drawing inference from the collected facts and

explaining the significance of those inferences after an analytical and experimental study. It

is a search for broader and more abstract means of the research findings.

5.1 CONSUMER BUYING BEHAVIOUR QUESTIONNAIRE ANALYSIS

SAMPLE SIZE DETAILS:

Sample Population: Business Person, Service Person, Student, Housewife's Etc.Sample Size: 100 Consumers

Age Group:

Sl. No. Age Group Number

1 15-20 52

2 20-25 31

3 25-35 9

4 35-50 5

5 Above 50 3

Source: - Field survey

Table 5.1.1 Age group

15-20 52%

20-25 31%

25-35 9%

35-50 5%

Above 503%

Chart 5.1.1 Age group

Occupation:

41

Sl. No. Category Number

1 Student 76

2 Business Person 12

3 Regular Employee 8

4 Others 4


Table 5.1.2 Occupation details

Student 76%

Business Person12%

Regular Em-

ployee8%

Others4%

Chart 5.1.2 Occupation details

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

Sl. No.Category Number

1Ball Pen 84

2Gel Pen 12

3 Ink Pen 24 Premium pen 2


Table 5.1.3 Types of pen using by consumer

42

Ball Pen 84%

Gel Pen12%

Ink Pen 2%

Premium pen2%

Chart 5.1.3 Type of pen using by consumer

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

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

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

Sl. No. Brands Number1 Classmate 92 Reynolds 123 Cello 464 Lexi 255 Linc 36 Italia 27 Others 3


Table 5.1.4 Most preferred brands

43

Classmate9%

Reynolds12%

Cello46%

Lexi25%

Linc3%

Italia2%

Others3%

Chart 5.1.4 Most preferred brands

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

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

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

Sl. No.

Price Range Number

1 Below RS 5 20

2 Beteen RS 5 -Rs 10 603 Between RS 10-Rs15 124 Between RS 15-Rs20 55 Avove 20 3


Table 5.1.5 Most selling price range of pens

Below RS 520%

Beteen RS 5 -Rs 1060%

Between RS 10-Rs1512%

Between RS 15-Rs205%

Avove 203%

Chart 5.1.5 Most selling price range of pens

44

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

Q 4).From where do you prefer to buy pen?

Sl. No. Type Number

1 Stationary shops 81

2 Super market 8

3 Shopping malls 9

4 Others 2Source: - Field survey

Table 5.1.6 Places of purchase

Stationary shops 81%

Super market

8%

Shopping malls9%

Others2%

Chart Title

Chart 5.1.6 Places of purchase

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

45

Q 5). Which Characteristics of Pen Influence your Buying Decision?Sl. No. Characteristic Number

1 Smoothly writing 682 Grip 103 Price 84 Long-Life 65 Brand Name 8


Table 5.1.7 Factors influencing buying decision

Smoothly writing68%

Grip10%

Price8%

Long-Life6%

Brand Name 8%

Chart5.1.7 Factors influencing buying decision

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

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

Sl. No. Media Type Number1 TV Advertisements 612 Banners & hoarding 53 Newspapers & Magazines 194 Internet 15


Table 5.1.8 Types of advertising media

46

TV Advertisements61%

Banners & hoard-

ing5%

Newspapers & Magazines19%

Internet15%

Chart 5.1.8 Types of advertising media

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

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

Sl. No. Response Number1 Yes 292 No 71


Table 5.1.9 Effect of In-shop advertisement

Yes29%

No71%

Chart 5.1.9 Effect of In-shop advertisement

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

47

If Yes, Which influences the most?

Sl. No. Type Number

1 Posters 10

2 Hoardings 1

3 Pen Stands 12

4 Stickers 5


Table 5.1.10 Most influencing In-shop advertisements

Posters34%

Hoardings3%

Pen Stands41%

Stickers17%

Others3%

Chart 5.1.10 Most influencing In-shop advertisementsFindings: - From the chart it can be concluded that Pen stands are the most influencing In shop Ad impacting the buying decision of different consumer segments having almost 41%

of the responses. Hoarding is the least influencing among all mediaInference:- Pen stands are the most influencing In shop Ad impacting the buying decision of different consumer segments

Q 8). Who influence your buying decision most?

Sl. No. Type of Respondents Number1 Parents 182 Friends 643 Colleagues 94 Sales person 85 Others 1


Table 5.1.11 Persons who influencing buying decision

48

Parents18%

friends64%

colleagues9%

sales person8%

others 1%

Chart 5.1.11 Persons who influencing buying decision

Findings: - 64% of the respondents buying decision are influenced by friends. The next most influencers are parents.

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

Q 9). Do You Choose Only One Brand?


Table 5.1.12 Number of brand loyal customers

Yes60%

No40%

Chart 5.1.12 Number of brand loyal customersFindings: - From the above chart it is analysed that 60% of responses are loyal to any brand where as 40% of respondents are do not loyal and stick to only 1 brand. Inference: - Majority of the respondents stick or are loyal to particular one brand

If Yes, Which brand?

49


Sl. No. Brand Number

1 Classmate 6

2 Reynolds 10

3 Cello 29

4 Lexi 14

5 Linc 2

6 Italia 1


Table 5.1.13Brand loyalty among different pens

Classmate10%

Reynolds16%

Cello46%

Lexi22%

Linc 3%

Italia 2%

Others2%

Chart 5.1.13 Brand loyalty among different pens

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

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

Q10) Why do you purchase the same brand?

Sl. No. Category Number

1 High Quality 46

2 Brand Image 11

3 Easy Availability 24

4 Value for money 16


50

Table 5.1.14 Reasons for brand loyalty

High Quality46%

Brand Image11%

Easy Availability24%

Value for money16%

Others3%


Chart 5.1.14 Reasons for brand loyalty

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

51

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

Sl. No. Brand 1ST 2ND 3RD 4TH 5TH

1Classmates 12 14 22 27 25

2Cello 42 27 9 10 12

3Reynolds 24 24 27 14 11

4Lexi 17 25 14 26 18

5Italia 5 10 28 23 34

Table 5.1.15 Ratings of brand performance

Classmates Cello Reynolds Lexi Italia0

5

10

15

20

25

30

35

40

45

1ST2ND3RD4TH5TH

Brand name

No

of re

spon

dent

s

Chart 5.1.15 Ratings of brand performance

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

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

52

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

Sl. No.Number of Pen

Number of Respondents

1 Less than 2 9

2 2 to 5 183 5 to 10 254 More than 10 48


Table 5.1.16 Average no. of pen buying in a year

Less than 29%

2 to 518%

5 to 1025%

More than 1048%

Chart 5.1.16 Average no. of pen buying in a year

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

Q 13). Do You Refill Your Pen regularly?

53



Table 5.1.17 Number of regular refilling customers

Yes37%

No63%

Chart 5.1.17 Number of regular refilling customers

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

Inference: - Majority of respondents do not refill their pen

If No, Why


Table 5.1.18 Reasons for non- refilling of pens

54

Sl. No. Response Number

1 Pen Cost Is Negligible 42

2 Replacement results into Poor Performance 12

3 Refill Is Unavailable 9

4 Others 1.2

Pen Cost Is Negligible65%

Replacement results into Poor Performance

19%

Refill Is Unavail-

able14%

Others2%

Chart 5.1.18 Reasons of non- refilling of pens

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

Q14) Have you purchased classmate pen?


Table 5.1.19 Number of customers who have used classmate pens

55


Yes39%

No61%

Chart 5.1.19 Number of customers has used classmate pens

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

Inference:-Majority of respondents has never used classmate pen

56

RETAILR’S QUESTIONNAIRE ANALYSIS

a) Type of store

Sl. No. Category Number1 Stationary store 302 Department store 93 Supermarket 64 Malls 35 Others 2


Table 5.2.1 Types of stores

Stationary store60%Department store

18%

Supermarket 12%

Malls6%

Others4%


Chart 5.2.1 Types of stores

57

B) Average monthly Sales:

Sl. No. Monthly Sale Number1 Less than 1 lakh 282 1-3lakh 113 3-5lakh 54 5-10lakh 25 Above 10 lakhs 4


Table 5.2.2 Average monthly sale

Less than 1 lakh56%

1-3lakh 22%

3-5lakh10%

5-10lak

h4%

Above 10 lakhs8%

Chart 5.2.2 Average monthly sale

58

Q1) In which price range you sell maximum pens?

Sl. No. Price Range Number1 Less than 7Rs 262 7 to 10 213 10 to 15 34 15 t023 05 Above 25 0


Table 5.2.3 Price range of maximum pen sale

Less than 7Rs52%7 to 10

42%

10 to 156%

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

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

59

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

Sl. No. Type of Pen Number1 Ball Pen 482 Gel Pen 23 Ink Pen 04 Premium pen 0


Table 5.2.4 Most selling pen types

Ball Pen96%

Gel Pen4%

Chart5.2.4 Most selling pen types

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

Inference: - Majority of the retailers sells Ball Pen more than others

Q3) Maximum sales under the price range between Rs5-Rs.20 are for which brand of pens?

60

Sl. No. Brands Number1 Cello 382 Lexi 93 Reynolds 34 Classmate 05 Linc 06 Flair 07 Others 0


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

76%

18% 6%

Cello Lexi Reynolds Classmate Linc Flair Others

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

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

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

Q4)-Sales of pens between the ranges of Rs5-Rs.20 is high during which period of time?

Sl. No. Time Number1 High during exams 15

61

2 Stable throughout the year 63

When new Schemes are introduced0

4 School opening time 29 Source: - Field survey

Table 5.2.6 Maximum pen selling season

High during exams30%

Stable throughout

the year12%

School opening time58%

Chart 5.2.6 Maximum pen selling season

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

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

Sl. No. Name of Brands Number1 Classmate 122 Reynolds 42

62

3 Cello 484 Lexi 375 Linc 106 Flair 187 Italia 118 Lexor 89 Win 23


Table 5.2.7 Brands of pen keeping in each store

Classm

ate

Reynolds

Cello

Lexi

Linc

Flair

Italia

Lexor

Win

0

10

20

30

40

50

60

Series 1

Brand name

No

of re

spon

dent

s

Chart 5.2.7 Brands of pen keeps in each storeFindings: - Among various respondents 48 stores have the stock of cello pen and 42 have Reynolds in their shop

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

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

Sl. No. Characteristic Number

63

1 Smoothly writing 282 Grip 23 Price 54 Long-Life 25 Brand Name 136 Looks 0Source: - Field survey

Table 5.2.8 Factors influencing buying decision

Smoothly writing56%

Grip4%

Price10%

Long-Life4%

Brand Name26%

Chart 5.2.8 Factors influencing buying decision

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

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

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

Sl. No. Response Number1 High 1

64

2 Average 93 Low 314 Nil 9


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

High2% Average

18%

Low62%

Nil18%

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

Findings: - From the above graph that it can be identified that in most of the consumer buying decision process the influence of sales people is low. ie .(62%) Inference:- For most of the consumer buying decision process the influence of sales people is low

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

Sl. No. Characteristic Number1 High margin 412 Schemes 3

65

3 Quality of products 64 Others 0


Table 5.2.10 Retailers motivating factors to push the products

High margin82%

Schemes6%

Quality of products12%

Chart 5.2.10 Retailers motivating factors to push the products

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

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

Q9) How often retailers replenish their stocks?

Sl. No. Time Duration Number1 Every week 9

66

2 Once in two week 273 Once in a month 114 Others 3


Table 5.2.11 Types of stock replenishing

Every week18%

Once in two week54%

Once in a month22%

Others6%

Chart 5.2.11 Types of stock replenishing

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

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

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

Sl. No.Response Number

1Yes 23

67

2No 27


Table 5.2.12 Influence of In-shop advertisements

Yes46%

No54%

Chart 5.2.12 Influence of In-shop advertisements

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

Inference:- Majority of the respondents don’t think that in-shop advertisement influence consumer buying decision


Sl. No. Type Number1 Posters 182 Hoardings 43 Pen Stands 144 Stickers 125 Others 2


Table 5.2.13 Types of In-shop advertisements

68

Posters36%

Hoardings8%

Pen Stands28%

Stickers24%

Others4%

Chart 5.2.13 Types of In-shop advertisementsFindings: - From the chart it can be concluded that for 36 % of respondents Posters are the influencing in shop advertisement. The next most influencing is pen stands with 28%. Hoarding & others are the least influencing among all.

Inference:- Posters are the most influencing in shop advertisement.

69

Q11) For non-brand loyal customers, which brand you suggest most?

Sl. No. Brand Number1 Classmate 22 Reynolds 103 Cello 144 Lexi 235 Linc 06 Flair 1


Table 5.2.14 Brands suggested for non-brand loyal customers

Classmate4%

Reynolds20%

Cello28%

Lexi46%

Flair2%

Chart 5.2.14 Brands suggested for non-brand loyal customers

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

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

70

Q12) What make you to do so?

Sl. No. Characteristic Number1 High margin 432 Schemes 43 Quality of products 34 Brand image 05 Others 0


Table 5.2.15 Influencing factors of retailer’s brand suggestion

84%

8% 6%2%

High margin Schemes Quality of productsBrand image Others

Chart 5.2.15 Influencing factors of retailer’s brand suggestion

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

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

71

Q13)Do you have classmate pen in your store?

Sl. No.Response Number

1Yes 12

2No 38


Table 5.2.16 No of stores having classmate pens

Yes24%

No76%

Chart 5.2.16 No of stores having classmate pens

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

Inference:-Majority of the stores doesn’t have classmate pen in their store

If Yes, What makes classmates to sell more?

Sl. No. Characteristic Number1 Improve quality 12 Better margin 13 More advertisement 54 Better availability 65 Others 0


Table 5.2.17 Factors for improving classmate’s sale

72

Improve quality8%

More advertisement42%

Better availability50%

Chart 5.2.17 Factors for improving classmate’s sale

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

Inference: - Most of respondents believe that better availability & advertisement results into better sales

If No, Are you interested to sell classmate pen?



Table 5.2.18 Number of stores interested to sell classmate pen

Yes84%

No16%

Chart 5.2.18 Number of stores interested to sell classmate pen

73

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

Inference:-Majority of respondents who are not selling classmate pen are willing to sell

classmate pen

74

CHAPTER 6 –FINDINGS &

SUGGESTIONS

75

6.1 FINDINGS

Amongst different types of Pen, Ball pen is preferred by most of the consumers

Cello Brand enjoys the market leader position and it is also preferred by the majority

of the consumers for writing among the different brands of Pen available in the

market.

Among the various price of pens available in the market, between Rs 5-10 price level

is the most popular level.

Most of the consumers are prefer to buy pen from stationary shops.

Smooth writing is the most influencing pen characteristic in the consumer buying

process of pen

TV advertisement is the most influencing media for customers to buy pen.

Though the effect of In-shop advertisement towards customer is minimum, among the

various mediums pen stands influences the most.

Friends are most influencing category of people in consumer buying decision of pen.

Though there is no strong brand loyalty towards any brands, high quality can make

brand loyal customers.

Most of the customers buy more than 10 pen in a year on an average basis

Customers are less inclined to refill their pen because the pen cost is negligibly small

Among the surveyed customers only 39% has used classmate pens.

Maximum sale of pen happens during the school opening time.

High margin is the main pushing factor for retailers to sell more products

Most of the retailers replenish their stocks once in two weeks

Among the surveyed retailers only 24% have classmate pen in their store

In retailer’s opinion by improving the availability of classmate pen, the sales can be

improved.

76

6.2. SUGGESTIONS

The Suggestions given are based on the consumer and retailer survey and its analysis and

studying the Companies Own Marketing Mix at ITC Ltd and as per my knowledge regarding

the concerned subject.

Cello Company is regarded as No 1 market leader due to its product verities mainly in

the Price range ranging from Rs 5 – 20 .In this Low Price Segment where majority of

consumers prefer to buy their pen. At the same price range Classmate have very less

products which can satisfy consumer need. So hereby I suggest that Classmate should

Come up with more products in Effective Price range Of Rs5 – 20, targeted to

different consumer segments.

The practice of “Use and Throw” is more visible in consumers, so classmate should

bring some models in below 5 Rs price level.

Company should strongly take care of availability of pens at rural retail outlets.

As Classmate is relatively new to the market consumers are not that much aware

about the product, so company should focus more on promotional activities

Compare to other brands classmates have limited or minimum In-shop advertisement

objects, by increasing this brand awareness can be improved.

From the survey it is clear that different variable/features influence buying decision of

consumer in different segments. Thus Company should not have a common

Positioning for all Target Markets. The companies should try to focus on a target

group by focusing on various characteristics that affect their buying decision

Thus if the Company uses all the above mentioned features for specific target market

and makes the product, fixes the Price and positioned properly and effectively than it

can definitely outperform it competitors in Different Segments.

77

CHAPTER 7–CONCLUSION

78

CONCLUSION

The project entitled “A Study of the Consumer Buying Behaviour of Classmate Pen”

has helped in studying the various aspects of consumer behaviour especially towards pens.

The study also helped in understanding and analyzing customer satisfaction about services

and products offered to customers. Every player in the pen industry is trying to cover more

market share than the other. So the company must be more alert providing high quality

service and awareness to customers.

The researcher hope the company will find his findings relevant and sincerely hope it

uses his suggestions enlisted, which he hopes will take them miles ahead of competition. In

short, the researcher would like to say that the very act of the concerned management at ITC

Ltd in giving him the job of critically examining consumer buying behaviour towards pen of

the company.

79

BIBLIOGRAPHY

ITC India Ltd -Annual Report (2012).

Kothari, C.R.( 1982). Research methodology. New Delhi: Tata McGraw-Hill Ltd.

Das ,Bhagaban& Das ,Debadutta (2006) .Consumer Buying Behaviour In India: New

Delhi: Tata McGraw-Hill Ltd

Solomon,R,Michael(2010). Consumer Behaviour - Buying, Having, And Being,

Prentice Hall PTR

Ali ,S.S,. Thakur,A.K,.Madhavan,K,.Palat(2009)-Models in Consumer Buying

Behaviour. Deep & Deep Publication

WEB SITE

http://www.itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-

report-2013/content.aspx ( June,2013)

http://www.citehr.com/29099-hr-issues-retailing-business-plan.html (June,2013)

http://www.scribd.com/doc/82186216/Indian-Pen-Industry-Project (”n.d”)

80

APPENDIX

81

Consumer Buying Behaviour Questionnaire

Name -----------------------------

Age Group:

(a ) 15-20 [ ] (b)20-25 [ ] (c) 25-35 [ ]

(d) 35-50 [ ] (e) Above 50 [ ]

Place______________________

Occupation:

Student [ ] Business Person [ ]

Regular Employee [ ] Others [ ] _____________

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

a) Ball Pen [ ] b) Gel Pen [ ]

c) Ink Pen [ ] d) Premium pen [ ]

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

a) Classmate[ ] b) Reynolds [ ] c) Cello[ ]

d) Lexi[ ] e) Linc [ ] f) Italia [ ]

g) others____________

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

( a) Below Rs 5 [ ] (b) Between Rs 5-Rs 10 [ ]

(c) Between Rs 10-Rs 15 [ ] (d) Between Rs 15-Rs 20 [ ]

(d) Above 20[ ]

Q 4).From where do you prefer to buy pen?

(a) Stationary shops [ ] (b) Super market [ ]

(c) Shopping malls [ ] (d) Others____________

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

a )Smoothly writing [ ] b)Grip[ ] c) Price[ ]

d)Long-Life [ ] e)Brand Name [ ]

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

a) TV Advertisements[ ] b) Banners & hoarding[ ]

c) Newspapers &Magazines[ ]d) Internet[ ]

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

a) Yes [ ] b) No[ ]


a)Posters [ ] b) Hoardings[ ]c)Pen Stands[ ] d)Stickers

82

Others__________________

Q 8). Who influence your buying decision most?

a) Parents[ ] b)friends[ ] c) colleagues[ ] d)sales person[ ] e) others [ ]

Q 9). Do You Choose Only One Brand?

a) Yes [ ] b) No[ ]

If Yes, Which brand?

a) Classmate[ ] b) Reynolds [ ] c) Cello[ ]

d) Lexi[ ] e) Linc [ ] f) Italia [ ]

Q10) Why do you purchase the same brand?

a) High Quality[ ] b) Brand Image[ ] c) Easy Availability [ ]

d)Value for money[ ] e)others____________

Q 11).Rank the brands of pens according to your preference from 1-5?

Classmates[ ] Cello[ ], Reynolds[ ], Lexi[ ], Linc[ ], Italia[ ]

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

a)less than 2[ ] b) 2-5 [ ] c)5-10 [ ] d)more than 10[ ]

Q 13). Do You Refill Your Pen regularly?

a) Yes b) No

If No, Why

a) Pen Cost Is Negligible b) Replacement results into Poor

Performance

c) Refill Is Unavailable d) Specify If Others,______________

Q14) Have you purchased classmate pen?

a) Yes [ ] b) No[ ]

83

Retailers Questionnaire

Name of the store: ___________________________

Location:_______________________________

Contact No:_____________________________

Type of store

a) Stationary store [ ] b) Department store[ ] c) Supermarket [ ]

d) Malls [ ] e) others______________

Average monthly Sales:

a) less than 1 lakh[ ] b)1-3lakh [ ] c)3-5lakh [ ]

d) 5-10lakh[ ] e) above 10 lakhs[ ]

Q1) In which price range you sell maximum pens?

a) Less than 7Rs[ ] b)7-10 [ ] c)10-15[ ]

d)15-25 [ ] e)Above 25[ ]

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

a) Ball Pen [ ] b) Gel Pen [ ]

c) Ink Pen [ ] d) Premium pen [ ]

Q3) Maximum sales under the price range between Rs5-Rs.20 are for which brand of pens?

(Rank in order of sales)

(a) Classmate [ ] (b) Reynolds[ ]

(c) Cello[ ] (d) Lexi [ ] e)Linc [ ] f)Flair[ ]

(g) Others[ ] (please specify)___________

Q4)-Sales of pens between the ranges of Rs5-Rs.20 is high during which period of time?

(a) High during exams [ ] (b) Stable throughout the year [ ] (c) When new

Schemes are introduced[ ]. (d) School opening time[ ]

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

a) Classmate [ ] b) Reynolds[ ] c) Cello[ ] d) Lexi [ ]

e) Linc [ ] f)Flair[ ] g) Italia[ ] h)Lexor [ ] i)Win[ ]

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

a )Smoothly writing [ ] b)Grip[ ] c)Price[ ]

d)Long-Life [ ] e)Brand Name [ ] d)Looks[ ]

Q7 ) Your influence towards customer in their buying decision?

a)High b)Average c)Low d)Nil

Q8) What motivate you to push the products more to customers?

a) High margin [ ] b)Schemes[ ] c)Quality of products [ ]

84

d) Others__________

Q9) How often you replenish your stocks?

a)every week[ ] b)once in two week[ ] c) once in a month [ ]

d)more_________

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

a) Yes [ ] b) No[ ]


a)Posters [ ] b) Hoardings[ ]c)Pen Stands[ ] d)Stickers

Others__________________

Q11) For non-brand loyal customers, which brand you suggest most?

a) Classmate [ ] (b) Reynolds[ ]

(c) Cello[ ] (d) Lexi [ ] e)Linc [ ] f)Flair[ ]

Q12) What make you to do so?

a)High margin[ ] b)Schemes[ ] c)Quality of products[ ]

d)Brand image [ ] others[ ] ____________

Q13)Do you have classmate pen in your store?

a) Yes [ ] b) No[ ]

If Yes

What makes classmates to sell more?

a) Improve quality b) better margin c) more advertisement

d) Better availability e) others_____________

If No

Are you interested to sell classmate pen?

a) Yes [ ] b) No[ ]

85

PORTFOLIO MIX OF CLASSMATE PEN AND ITS COMPETIOTORS

1) CLASSMATE

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

Archimedes 130

Chopin 150

2) CELLO

TYPE MODEL PRICEBall Pen Jolly 3 Faster 5 Nice 5 Trimate 5 Uno 5 Easy Write 5 Tip Top 5 Delta 5 Nova 5 Crown 5 Retra Fashion 5

86

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

87

Jetset 45 Duke 49

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

Roller Pen Rolly 40 Benz 55

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

88

Venice 75 Executive 75

3) REYNOLDS

TYPE MODELPRICE

Ball Pen Champ 5 Brite 5 Buero 040 5 Bold 5 Fusion 5 Fusion Bold 5 045 fine carbure 6 Eurolism 6 Officerite 6 045 Student 6.5 Energi 8 Zetpoint 10 Liquiflo 10 Electro 10 Liquiflo Student 10Retractable Ezio Pen 10 Jetter regular 15 Revo 15 Jetter Grip 15 JetterAerosoft 20 Jetter Designer 20 Jetter Aviator 20 Jetter Youth 20 Jetter Glitz 20 Jetter Metallica 25 Jetter Chroma- DX 25 Jetter Aviator -MX 30 Trimax 35 JetterMetalica FX 40 Premier Gold 50 JetterNumatic 60 Premier 90 Gel Pen Mera Gel 5

89

Jeffi Gel 5 Mera Gel I 6 Mera Gel II 6 Razor Active 10 Razor Gel I&II 10 Force Gel 10 Eterno Gel 15 V-Max Gel 20 Trimax 35

4) LINCTYPE MODEL

PRICE

Ball Pen Glycer 5 Thrill 5 Retract 5 Crazy 5 Smart 5

Executive Ball 10

Glitter 10 Meeting 15 Seramic 25 Joy 35 Classic 35 Class 40 Swift 70

Signature Gold 85

Uni Ball

Jestry 101 20

Uni Ball 25 Uni 120 25 Gel Pen Linc 070 5

Linc 070 gel 6

Ocean 6

5)CLARO PEN

90

Name of the ProductBall Pen/ Gel Pen.

Price Per PieceMRP.

NOVA Ball Pen 3 SWIFT Ball Pen 3 GENIUS Ball Pen 5 BRIO Ball Pen 5 COOL Ball Pen 5 LUCKY Ball Pen 5 X CEL Ball Pen 6 SONIC Ball Pen 6 C-999 Ball Pen 6 BIG BENN 100 Ball Pen 7

C-100 Ball Pen 7 ROCK 200 Ball Pen 10

SMOOTHFLOW

Ball Pen 10

ANGEL Ball Pen 10 ARIA Ball Pen 10 ULTIMA(NEW) Ball Pen 10 IVY(NEW) Ball Pen 10

JAZZ(NEW) Ball Pen 10VISION Ball Pen 10

CR-54 Ball Pen 10CL-108 Ball Pen 10IRIS Ball Pen 10

DURO Ball Pen 15 BOSS Ball Pen 15 CR-45 Ball Pen 15 CL-333 Ball Pen 15 RICO Ball Pen 15 EXPERT(NEW) Ball Pen 90

CENTURY(NEW)

Ball Pen 110

SOLITAIRE(NEW)

Ball Pen 130

ACCENT(NEW) Ball Pen 150

LUCKY 7(NEW)

Gel Pen 5

RIO Gel Pen 5

TEEN Gel Pen 5

MASTER Gel Pen 5 SX-5 Gel Pen 5

91

MACK Gel Pen 5 CHAMP Gel Pen 5 SONIC Gel Pen 6 CG-999 Gel Pen 6

CG-109 Gel Pen 10HONEY Gel pen 10

SUPER HERO Gel Pen 10FUN(NEW) Gel Pen 10

FUNK(NEW) Gel Pen 10 MILTON 10X Gel Pen 10 SIGMA Gel Pen 10 CG-110 Gel pen 15 ELITE Gel Pen 20

JETTA(NEW)Ball +Gel

Pen15

SIGMABall +Gel

Pen25

ANGELBall +Gel

Pen25

ROCK 200Ball +Gel

Pen25

IRISBall +Gel

Pen25

REVA(NEW)Retractabl

e +Ball Pen

30

BOSSBall +Gel

Pen35

6) FLAIR

TYPE MODEL PRICEBall Pen FX 5 Max 5 FX Dark 5 Easy Click 5 Jackpot 5 Marathon 10 Striker 10 Liqui touch 10

92

Ion 10 Digital 15 Sunn(4 color) 20 High way 40 Spectrum 70 Gel Pen Hydra 5

Phinix 5 Matrix 10 Fashion Gel 10 Glitter 10

WIN ITALIA

Bee Gel 5 Trivo 3Guide 10 Club Gel 5Titium 30 Petra 5Olivia 40 Stella 5Dezire 40 Weather Flow 10

Tivoli 10Docker Safari 30Revo 125

LEXI ROTOMAC

Maxima 5Ball Pen Get speed 5 Boss Gel 5 5N 5 Forever 12

Fine Point 10

MONTEXMega Top 10

93

anam main project.docx

Documents

study of consumer behaviour

buying behaviour

marketers study consumer

behaviour of pens

study purchases

behaviour pattern

particular consumer

large number of consumers