my project final (recovered)

60
EXECUTIVE SUMMERY In the world where only permanent thing is “the change”, the market for every product is changing at a nano second pace. Markets for every product category has become highly competitive added with the increasing awareness of the consumer. In such scenario the importance of market study by doing survey become indispensable. With this importance in consideration I was assigned the work of market study of stationery products. The project is done for “ITC Ltd, Pune”. The main objectives of this project are to understanding the market of stationery product of Pune for ITC’s brand Classmate and also to find out the preferences, quality, taste, awareness and satisfaction level of retailer for this product. Initially, a survey to ascertain the position and availability of ITC’s brand Classmate in the retail 1

Upload: shrnil

Post on 12-Jan-2015

8.827 views

Category:

Business


0 download

DESCRIPTION

 

TRANSCRIPT

Page 1: My project final (recovered)

EXECUTIVE SUMMERY

In the world where only permanent thing is “the change”, the market for every

product is changing at a nano second pace. Markets for every product category

has become highly competitive added with the increasing awareness of the

consumer. In such scenario the importance of market study by doing survey

become indispensable. With this importance in consideration I was assigned the

work of market study of stationery products.

The project is done for “ITC Ltd, Pune”. The main objectives of this project are to

understanding the market of stationery product of Pune for ITC’s brand Classmate

and also to find out the preferences, quality, taste, awareness and satisfaction level

of retailer for this product.

Initially, a survey to ascertain the position and availability of ITC’s brand

Classmate in the retail outlets and study about competitive brands of Classmate in

the market was conducted in Pune city which served as a source of primary data.

Other source like internet, company broaches the purpose of secondary data.

Collection of maximum first hand information was the prime objective of the

various activities of data collection. The data was collected, analysed, represented

in the form of various facts and figures. A series of informal talks with the

retailers helped to judge their perception about the availability and distribution. It

was also found that the Classmate products did not exist in some areas, which

gave an opportunity to competitors to capitalize on classmate’s absence from

1

Page 2: My project final (recovered)

these areas. Research and methodology part includes the type of research which is

used i.e., Survey Method. It again has method of data collection through which

data is collected for this project. i.e. Primary and Secondary data. The Primary

data includes questionnaire for retailers , which is structured .

Every project has some limitations and this survey is not apart from that . one of

the major limitations of this survey is the time limit for the project. It is not

possible to cover a large sample size to get the exact results.

Analysis part includes the detailed analysis of the whole data collected during the

project. Analysis is done after considering each and every question of the

questionnaire and based on that graphs and tables are drawn which ultimately

helped to draw the final conclusion of the project. Comparison is done between

the different stationery brand with the Classmate and the results are carried out .

Based on the analysis of the survey, the conclusion is drawn which matches the

objective of the project and based on the conclusion, the suggestions are given

which is the ultimate result of the survey.The questionnaire designed for

collecting the data is attached with this report which is questionnaire for retailers

is structured and it gives the essential information required for the further

research. On the basis of collected information from the retailers, it was easy to

identify the problems and solutions. Time to time suggestions and their queries

helped a lot to jot down the final suggestions required for ITC Company. The

essence of whole project demands on the analysis, suggestions and conclusion.

2

Page 3: My project final (recovered)

INTRODUCTION

1.1 INTRODUCTION

The project intends to decipher the satisfaction level as well as the preferences of retailers

pertaining to the various stationery brands launched by ITC. We aim to analyse the

success, marketability and future growth prospects stationery brands. Basically we intend

to find out the most popular stationery brand in the market from our sample.

Stationery brands as such are a very minor part of the FMCG industry because FMCG

sector is largely organized. Here we will also look into the market trends in stationery

brands.

For this a survey was conducted in Pune where respondents were asked to fill a

questionnaire. The data was collected and analysed to obtain conclusions. This report

carries an introduction of the company profile, detail of the methodology followed

detailed data analysis and the results so obtained with the variety of graphs along with

given.

Summer training gives us an insight into the working of the real corporate world. It gives

us the practical knowledge of the working of the organizations. During the short time

within the industry, we get to learn the various aspects of an organizations like the culture

followed, the functional aspects etc.

The main objective of the summer internship is to experience the various concepts that

we learn in our first year of management course, as learning the concepts is very

different from experiencing them at a concrete level. We learn to face the various

situations by establishing relationships between real and significant factors in a situation.

We also learn that in a given situation all the functional aspects are inter-related; one

3

Page 4: My project final (recovered)

functional aspect cannot be isolated from the organization. We learn to be more confident

by judging the various situations based on our reasoning and by the application of our

knowledge in these situations.

4

Page 5: My project final (recovered)

1.2 CONCEPTUAL BACKGROUND:

What is Retailing?

Retailing is a distribution channel function where one organization buys products from

supplying firms or manufactures the product themselves, and then sells these directly to

consumers. A retailer is a reseller (i.e., obtains product from one party in order to sell to

another) from which a consumer purchases products. In the US alone there are over

1,100,000 retailers according to the 2002 US Census of Retail Trade.

In the majority of retail situations, the organization from which a consumer makes

purchases is a reseller of products obtained from others and not the product manufacturer.

But as we discussed in the Distribution Decisions tutorial, some manufacturers also

operate their own retail outlets in a corporate channel arrangement. While consumers are

the retailer’s buyers, a consumer does not always buy from retailers. For instance, when a

consumer purchases from another consumer (e.g., eBay) the consumer purchase would

not be classified as a retail purchase. This distinction can get confusing but in the US and

other countries the dividing line is whether the one selling to consumers is classified as a

business (e.g., legal and tax purposes) or is selling as a hobby without a legal business

standing.

As a reseller, retailers offer many benefits to suppliers and customers as we discussed in

the Distribution Decisions tutorial. For consumers the most important benefits relate to

the ability to purchase small quantities of a wide assortment of products at prices that are

considered reasonably affordable. For suppliers the most important benefits relate to

5

Page 6: My project final (recovered)

offering opportunities to reach their target market, build product demand through retail

promotions, and provide consumer feedback to the product marketer.

Definition of Retail Audit

Study of a selected sample of retail outlets, provided as subscription-based service by

market research firms. Retail-audit service providers gather information on a brand's

sales volume, sales trends, stock levels, effectiveness of in-store display and promotion

efforts, and other associated aspects

6

Page 7: My project final (recovered)

1.3 PROBLEM STATEMENT

Statement of the Problem is “To study of retail audit of stationery

product of ITC ltd”

Today’s word is changing rapidly either economically, technologically or

politically due to the globalization. It’s become difficult for any type of

company to sustain in the market, face the challenges, fulfill the needs and

wants of the customer and at the same time increase the market share.

1.4 OBJECTIVES

1) To verify the physical location of the outlets.

2) To find out availability of stationery product of ITC in the retail outlet.

3) To find out the competitors.

4) To study about the competitor brands in study segments.

5) To find out trade margin for stationery product.

6) To find the problem of retailers with the distributor or the company.

7) To suggest majors for improving the availability of stationery product of ITC in

the retail outlet.

7

Page 8: My project final (recovered)

1.5 SCOPE OF THE STUDY

It covers the market survey with the help of which market potential is

carried out.

It compares the major players of the stationery products on various aspects

such as price, quality, durability, brand image.

Analyzing the gap among the various competitors in the market.

It is also useful for finding out actual expectations of the existing

customer.

1.6 LIMITATIONS OF THE STUDY:

Exact data collection is not possible by sub-dealer

Response error, interview error and based answers in some cases were the other

limitation of study.

Due to unavailability of time and reluctance on the part of the interviewee there

may be some minor problem.

The major problem of the survey was that most of the respondents being very

loyal to their brands didn’t give exact answers .like they didn’t talk much about

what problems they are facing, what are the different marketing schemes of the

brand in which they deal etc.

8

Page 9: My project final (recovered)

COMPANY PROFILE

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

nearly US $ 19 billion and a turnover of over US $ 5.1 billion. ITC is rated among the

World's Best Big Companies, Asia's 'Feb 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.

9

Page 10: My project final (recovered)

ITC India Limited

Type Public (BSE:ITC)

Founded August 24, 1910

Radha Bazar Lane, Kolkata, India

Headquarters Virginia House, Kolkata, India

Key people Y C Deveshwar, Chairman

K Vaidyanath, Director, CFO: Partho Chatterjee

Industry Tobacco, Foods, Hotels, Stationery, Greeting Cards,

Product Cigarettes, Packaged Food, apparel

Revenue $4.75 billion USD (2006)

Employees 20,000 (2007)

Website http://www.itcportal.com/

10

Page 11: My project final (recovered)

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

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

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

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

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

in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal

Care and Stationery.

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

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

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

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

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

businesses towards international competitiveness but by also consciously contributing to

enhancing the competitiveness of the larger value chain of which it is a part." ITC's

diversified status originates from its corporate strategy aimed at creating multiple drivers

of growth anchored on its time-tested core competencies unmatched distribution reach,

superior brand-building capabilities, effective supply chain management and

acknowledged service skills in hoteling. 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).

11

Page 12: My project final (recovered)

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

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

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

study at Harvard Business School, is expected to progressively create for ITC a huge

rural distribution infrastructure, significantly enhancing the Company's marketing reach.

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

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

including e-enabled services and business process outsourcing.

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

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

the first company in India to voluntarily seek a corporate governance rating.

ITC employs over 25,000 people at more than 60 locations across India. The Company

continuously endeavors to enhance its wealth generating capabilities in a globalizing

environment to consistently reward more than 3,72,000 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."

ITC has transformed itself from a leading cigarette manufacturer to an umbrella

group that offers a diversified product mix to enhance its brand image and reduce

dependency on tobacco related products. It has forayed into the hospitality service

industry and has become a major player in the hotels segment. Its position in the FMCG

(fast moving consumer goods) business is also on a growth curve; especially its

12

Page 13: My project final (recovered)

confectionery and biscuits which are slated to achieve the top ranks among its peers. It

has made heavy investments to strengthen its IT (information technology) segment and to

compete with the big players like Infosys and Wipro. Although the ITC group is

marketing its image as an ideal corporate citizen and a company that takes its social

responsibility seriously, it still earns 80% of revenues from selling cigarettes and other

tobacco related products.

13

Page 14: My project final (recovered)

2.1 The major areas in which ITC has diversified are:

Fig.2.1 Major brands of ITC

FMCG

Cigarettes

Food

Lifestyle Retailing

Greetings and stationery

Safety Matches

Incense sticks

Hotels

Paperboards and Packaging

Paperboards and specialty papers

packaging

14

Page 15: My project final (recovered)

Agri-Business

Agri- exports

E-choupal

Information Technology

2.3 Our Corporate Vision:

Our corporate vision is to merge the latest in technology with the best of natural

ingredients to create innovative color products. We consistently combine tradition with

scientific ingenuity to provide the market with products that deliver verifiable results.

2.4 VISION:

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

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

stakeholders.

2.5 MISSION:

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

environment, delivering superior and sustainable stakeholder value.

15

Page 16: My project final (recovered)

PRODUCT PROFILE

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

ChlorinFree (ECF) pulp, paper and paperboard.

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

Packaging & Printing 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.

16

Page 17: My project final (recovered)

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

Fig.2.2 Classmate note books

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

17

Page 18: My project final (recovered)

- 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”.

Dark and smooth writing coupled with Strong – Bonded lead offer an enjoyable

writing experience.

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.  

 

18

Page 19: My project final (recovered)

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, wires etc.

The Paperkraft brand recently launched premium

business paper–an environment friendly

multipurpose paper for office and home use. The

paper has been crafted by ITC’s Bhadrachalam unit

using a pioneering technology, called “Ozone Treated Elemental Chlorine Free

technology”. Paperkraft business paper is the whitest and brightest 75 & 70 GSM

papers manufactured in India and provides consumers an opportunity to “Go Green”.

In recognition of its quality products & processes, the business has been awarded with

ISO 9001:2000 by Messrs Det Norske Veritas.

Research Methodology

3.1 Research:

19

Page 20: My project final (recovered)

Market research is defined as a systematic gathering, recording and analysis of the data

concern with an objective. This whole activity is divided into various parts & after

compilation of that we reach at certain findings, which enable us to take marketing

decisions. It involves the diagnosis of information needed and the selection of relevant

and interrelated variables.

Redman and More defined research as a “systematized effort to gain new knowledge.”

The purpose of research is to discover answers to questions through the application of

scientific procedures. The main aim of research is to find out the truth which is hidden

and has not been discovered as yet.

3.2 Significance Of Research

Research inculcates scientific and inductive thinking and it promotes the development of

logical habit of thinking and organization. Research provides the basis for nearly all

Govt. policies on our economic system. Research has its special significance in solving

various operational and planning problems of business and industry.

3.3 Research Design

Survey method has been used for the data collection with the help of questionnaire as the

research instrument . It was a field research method where consumers visit were made to

gather the information needed for the market survey. The source for the information was

the consumers of the desired product.

3.4 Type of Research

Market research is being used to measure the characteristics of market, to obtain

information needed for forecasting to evaluate new product ideas and improve existing

20

Page 21: My project final (recovered)

product . There are number of decisions or alternatives in the market, one course of

action is to be selected from them.

3.5 Method of Research

The study falls under the category of Descriptive research and uses survey method.

Descriptive research includes survey and fact finding enquiries of different kinds. It is

description of state of affairs, as it exists at present. Main characteristics of this method

are that, the researcher has no control over the variables. He can only report what is

happening. The method of research used in this research was Survey method.Research

methodology is the process which helps in selecting the tools to achieve the objectives.

3.6 General Methodology:

The methodology adopted for this project was completely base on primary information.

The location of the study was in Pune dist. The first stage included gathering information

about the stationery product of the Pune market. That was, to find out which are the

major players, what is general distribution pattern, what is the buying behaviour of

customers. The second stage comprised determining the objective of the study and

drafting the questionnaire. The questionnaire was designed keeping in mind the objective

of the study. It was designed with due guidance of the company guide. It was assured that

the questionnaire prepared Keeping in mind the education level of the respondents who

were mainly retailers the questionnaire was kept simple and precise.

The methodology consists of :

Need and objective of research

21

Page 22: My project final (recovered)

Collecting the facts/data

Analysis of the data.

Conclusion and solution

1) Sampling design:

A definite plan developed to obtain a sample from a given population is called sampling

plan.

Designing the sample Based on two decisions. First, who is to be surveyed? Second, how

many people in the sample are chosen?

Sample unit: Retailers of stationery product in Pune dist. Of Maharashtra.

Sample size: The larger the size, the more accurate the result would be. But practically,

it’s not feasible to survey the entire target outlets. The sample size of the survey done by

me was 130 outlets.

Sampling Procedure

I try to find out most of the retailers in the market.

Contact Method

I personally visited most of the retailers. Few shopkeepers due to their busy schedule or

loyalty for their brand refused to respond at all.

2) Sources of data collection:

Primary data:

22

Page 23: My project final (recovered)

Data obtained from the first hand by the researcher is called the primary data.Here the

main source of primary data collection was interviews, discussion and interaction with

customers by using the Questionnaire.

Secondary data:

Secondary data refers to the data available in some form or another and may include the

result of the previously performed research or the available materials such as newspaper,

reports may be from the internet. Various sources of secondary data used in this research

are:

Internet

Interaction with the dealers.

Questionnaire as an instrument of data collections:

Questionnaires were used as an instrument for data collection for primary data collection.

P. V. Young has classified the questionnaire in two groups ,

1) Structured questionnaire

2) Non- structured questionnaire

Structured questionnaire contain definite, concrete questions with additional questions

limited to those necessary to classify inadequate answers or to elicit a more detailed

response. Structured questionnaire can be of two types, namely “disguised” and “non-

disguised”. This classification is based on whether the object or purpose of study is

23

Page 24: My project final (recovered)

revealed or undisclosed to the respondent. Thus a structured non-disguised questionnaire

is one where the listing of questions is in a pre-arranged order and object of the study is

revealed to the respondent. In a structured disguised questionnaire, researcher doesn’t

disclose the object of the study.

Non-structured questionnaire, often known as interview guide is used for focused, depth

and non directive interviews. It contains definite subject matter areas, the coverage which

is required during the interview, but the interviewer is largely free to arrange the form

and timing of enquiry.

Types of questions:

Open-end questions:

Close-end questions:

An open-ended or simply ‘open’ or ‘free answer’ question gives the respondent

complete freedom to decide the form, length and detail of answers. Open

questions are preferred when the researcher is interested in knowing what is

uppermost in the mind of the respondent. Close end questions has only two

answers in the form ‘yes’ or ‘no’, ‘true’ or ‘false’ or ‘do not use’ etc.

3) Analytical tools:

The data, which was collected, was summarized and tabulated on MS-excel for

further analysis. The analysis performed was mainly comparative analysis using

statistical analytical tools.

24

Page 25: My project final (recovered)

The tools that have been used are as follows:

Bar Chart

Pie Chart

DATA ANALYSIS & INTERPRETATION

In order to extract the meaningful information from the data collected an analysis of data

is done using pie charts, bar graphs etc.

1. Do the ITC distributer visit your outlet?

25

Page 26: My project final (recovered)

a) Yes b) No

Table no.4.1.1 Retail outlets visited by the distributer

Yes No

67 63

Graph No.4.1.1 Retail outlets visited by the distributer

Yes No

Series1 67 63

515253545556575

No

of o

utle

ts

Interpretation:

From above graph it is clear that out of 130 outlets only 67 (52%) outlet visited by

distributers and 63(48%) not visited by distributers.

2. If No, Is Distributor visited your outlet earlier?

Table no.4.2.1 Retail outlets covered by the distributer earlier

Yes No

5 58

26

Page 27: My project final (recovered)

Graph No.4.2.1 Retail outlets covered by the distributer earlier

Not visited visited earlier0

10

20

30

40

50

60

58

5

Series2

Interpretation:

Out of 63 outlets which were not visited by the distributors, 5 outlets were covered by the

distributors earlier. From the total outlets which were not visited by the distributor, 10%

outlets were visited by the distributor earlier.

3. Which of the following stationery products do you keep in your outlet?

Table no.4.3.1 Stationery products available in outlets

27

Page 28: My project final (recovered)

Graph no. 4.3.1 Stationery products available in outlets

Note book

Long b

ook

Graph book

Drawing b

ook

Reminder

pad

Pocket m

emo

Scrap

book

Pencils

Geometr

y box

Copier pap

er0

20

40

60

80

100

120

140

Stationery product available in Outlets

No.

of o

utle

ts

Interpretation:

28

CATEGORIES NO. OF OUTLETSNote Book 124Long Book 123Graph Book 110Drawing Book 113Reminder Pad 98Pocket Memo 97Scrap Book 95Pencil 119Geometry Box 102

Copier Paper 91

Page 29: My project final (recovered)

Out of 130 sample size, 124 outlets keep note books,123 outlets keep long books,

110 outlets keep graph books,113 outlets keep drawing books,98 outlets keep

reminder pad,97 outlets keep pocket memo,95 outlets keep scrap book,119 outlets

keep pencils,102 outlets keep geometry box,91 outlets keep copier paper.

4. Which stationery items of ITC do you keep in your outlet?

29

Page 30: My project final (recovered)

Table no.4.4.1 Stationery products of ITC available in outlets

Graph no. 4.4.1 Stationery products of ITC available in outlets

Note book

Long b

ook

Graph book

Drawing b

ook

Reminder

pad

Pocket m

emo

Scrap

book

Pencils

Geometr

y box

Copier pap

er0

10

20

30

40

50

60

70

80

90

Stationery product of ITC available in Outlets

Interpretation:

30

CATEGORIES NO. OF OUTLETS

Note Book 73

Long Book 80

Graph Book 50

Drawing Book 54

Reminder Pad 45

Pocket Memo 43

Scrap Book 40

Pencil 42

Geometry Box 45

Copier Paper 15

Page 31: My project final (recovered)

Out of 130 sample size, 73 outlets keep classmate note books, 80 outlets keep classmate

long books, 50 outlets keep classmate graph books, 54 outlets keep classmate drawing

books, 45 outlets keep classmate reminder pad, 43 outlets keep classmate pocket memo,

40 outlets keep classmate scrap book, 42 outlets keep classmate pencils, 45 outlets keep

classmate geometry box, 15 outlets keep paperkraft (copier paper of ITC).

5. What are the margins given by companies on the stationery product?

31

Page 32: My project final (recovered)

Graph no. 4.5.1 Trade margins on stationery products

CLASSMATE NAVNEET SUNDARAM CELLO CAMLIN LOCAL BRANDS

Series1 0.2 0.25 0.45 0.320000000000004

0.380000000000004

0.5

3%

8%

13%

18%

23%

28%

33%

38%

43%

48%

Trade Margins

Interpretation:

According to above graph, it is clear that local brands are giving 50% margin which is

higher .Trade margin of ITC is20%,Navneet is 25%,Cello is 32%, Camlin is 38%,

Sundaram is 45%and the retailer gets the maximum margin in local brand that is 50%.

6. Are you satisfied with the margin given by ITC?

32

Page 33: My project final (recovered)

Table no.4.6.1 satisfaction level with respect to margin

Yes NO Total

8% 92% 100%

Graph no. 4.6.1 satisfaction level with respect to margin

8%

92%

Satisfaction level with respect to margin

Yes

NO

Interpretation:

According to above graph, 92% retailers are not satisfied with the margins offered to

them by the company. While only 8 % retailers are satisfied with margins.

So company should rethink over trade margin policy.

7. Do you have any problem with the distributor Or Company?

33

Page 34: My project final (recovered)

Table no.4.7.1Problems of retailers with the distributerYes NO Total

54% 46% 100%

Graph no.4.7.1Problems of retailers with the distributer

YES54%

No46%

Problem with the distributor or company

Interpretation:

According to above chart, almost more than half i.e.54% respondents have problem with

company or the service of distributer. 46% respondents are satisfied.

34

Page 35: My project final (recovered)

CONCLUSION

A survey of the people has been conducted to know the liking pattern of the ITC

Stationery products . It is observed that overall retailers like to buy Stationery

products of other companies because of the margins given by them.

It is concluded that mostly people preferred Classmate of ITC due to its high

quality and image . Some people often like to have good Quality at lower price

that’s why they prefer other brands. Due to quality and brand image the ITC have

they are able to attract the customers.

It is thus concluded from the facts collected most of the market covered by the

ITC but the concentration on advertisement & promotional activities will help

them to become a market leader in stationery products.

FINDINGS

35

Page 36: My project final (recovered)

1. Findings regarding distribution :

There is delay in delivery of ordered product by 15 to 20 days. It is the

main reason due to which distributor loses his potential retailers.

Due to unavailability of ITC stationery on time, retailer sells another brand

to customer.

Demand of ITC product is high but company is not able to fulfill it.

Some retailers are purchasing classmate from the wholesale market

because it is in demand and distributor never visited there.

One of the major finding is that stock is not available in season.

2. Findings regarding Promotional activities:

Retailers are expecting some schemes during season.

Competitors are doing heavy promotional activities in comparison but

ITC believes in quality not in promotion.

Demand for Navneet products are high in some areas they advertise their

product in schools and some schools including Delhi board schools

making compulsion on student to purchase Navneet.

3. Findings regarding Product of ITC:

36

Page 37: My project final (recovered)

Geometry box : invento and victor, geometry box of ITC are new arrivals.

But it is found to be less attractive but people like its quality. It is better

than any other product.

Note books: few retailers are complaining that ink is visible by back side

of the paper of classmate note book.

Paperkraft : as compare to copy power (bilt) paperkraft is costly.

Pen: the major finding for pen is that the length of classmate inlet is

slightly higher that’s why it is not comfortable while keeping it in shirt’s

pocket.

4. On the spot payment, low cash discount, no credit facilities and fewer margins as

compare to competitors, push retailers to sell other competitive brands.

5. Some retailers feel and said that, ITC have over confidence in their product and

concentrating less on promotions.

6. Market leader of stationery brands. Competitors of classmate notebooks are

Navneet, for pencil it is natraj, for geometry box its camlin ,for

paperkraft(copier paper) its bilt.

SUGGESTIONS

37

Page 38: My project final (recovered)

1. Company has to look after its distribution channel, because company also

having problem in distribution in many areas. In most of the areas, demand is

there but sales agents don’t reach there. Company has to supply goods in these

areas.

2. To solve the problems of the retailers should be taken seriously.

3. There should POP (be point of purchase) display of new products like pen,

pencils and geometry box.

4. Company should produce telephone dairy as per market demand.

5. The new product paperkraft is liked by the customer because of its quality, but

company should increase margin or reduce PTR.

Bibliography

38

Page 39: My project final (recovered)

Book:

C.R. Kothari (2006), Research methodology, 3rd Edition, Vishwa Prakashan, New

Delhi.

Kotler Philip (2007), Marketing Management- A South Asian Perspective, 13TH

Edition, Prentice Hall of India Pvt. Ltd., New Delhi.

Websites:

http:// www.google.co.in /

http:// www.wikipedia.com /

http://www.itcportal.com/

39

ITC Ltd.

Retailer survey form

Page 40: My project final (recovered)

Name Of the Outlet :-_______________________________________________

Address:-_________________________________________________________

Contact no:-________________________

1) Which stationery items do you keep in your outlet?

1)__________ 2)___________ 3)____________ 4)____________ 5)___________

2) Which leading brands do you have?

1)__________ 2)___________ 3)____________ 4)____________ 5)___________

3) Which is the leading brands or competitors?

a) For Notebooks & related items.

1) ITC 2) Navneet

b) For Pencil.

1) ITC 2) Natraj

c) For Geometry box.

1) ITC 2) Camlin

d) For Copier.

40

Page 41: My project final (recovered)

1) ITC 2) Bilt

4) Is Distributor visited your outlet?

Yes No

5) If No, Is Distributor visited your outlet earlier?

Yes No

6) If Yes , Which stationery items of ITC do you keep in your outlet?

1)__________ 2)___________ 3)____________ 4)____________ 5)___________

7) Are you satisfied with the margin given by ITC?

Yes No

8) Do you have any problem with the distributor Or Company?

41

Page 42: My project final (recovered)

Yes No

If Yes, What are the problems__________________________________________

__________________________________________________________________

9) Any suggestions __________________________________________________

__________________________________________________________________

__________________________________________________________________

42