shubham chaudhary project

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UNDERSTANDING THE DISTRIBUTION SYSTEM OF I.T.C AN COMPETITIVE ANALYSIS Submitted for the partial fulfilment of the requirement for the award of POST GRADUATE DIPLOMA IN MANAGEMENT SUBMITTED BY:- Shubham chaudhary ROLL NO: - M2012104 UNDER THE GUIDENCE OF:- SUBMITTED TO:- Ms.Nidhi phutela Asst. Professor

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UNDERSTANDING THE DISTRIBUTION SYSTEM OF I.T.C

AN COMPETITIVE ANALYSIS

Submitted for the partial fulfilment of the requirement for the award of

POST GRADUATE DIPLOMA IN MANAGEMENT

SUBMITTED BY:-

Shubham chaudhary

ROLL NO: - M2012104

UNDER THE GUIDENCE OF:-

SUBMITTED TO:-

Ms.Nidhi phutela

Asst. Professor

APEEJAY INSTITUTE OF TECHNOLOGY- SCHOOL OF MANAGEMENT, GREATER

NOIDA (2012-14)

PREFACE

The PGDM AICTE (MBA) curriculum is so designed that we can get enough practical

knowledge of business world help them to explore their skills in corporate world in future.

The PGDM training helps us to understand and gain knowledge about the industry and the

market environment. It develops skills of analyzing and interpreting problems through

application of concepts and techniques of management.

I am lucky that, I got an opportunity for making the project report on “ITC Sun feast biscuit.”

I visited the various concerns for two months and I prepare my project report on the topic

“UNDERSTANDINGTHEDISTRIBUTION SYSTEM OF I.T.C AN COMPETITIVE

ANALYSIS..”

And the study is divided into various chapters to get knowledge. I also considered some

published material on the particular topic as well as about the concern. This helps me in

boosting up my confidence and determination which will help me to face the situation in

coming years. This report is written account of what I learnt and experienced during my

survey. I wish, those going through it will not only find it readable but also get as useful

information. The main limitation of my experience was that I did not get the full and correct

information from the market, as many of the respondents did not answer to my questionnaire

correctly and completely.

I did a project for ITC in Haridwar. The study consists of the following chapters. Introduction

of ITC, study on performance of Sunfeast biscuit in terms of their competitor, retailers and

customers perception, sales analysis, distribution, and conclusion etc.

ACKNOWLEDGEMENT

Life of human beings is full of interaction. No one is self-sufficient by himself whenever

anyone is doing some serious and important work a lot of help from the people concerned is

needed & one less specially obliged towards them. I cannot forget acknowledging them in

few words as without the guidance & co-ordination of them in my project report would not

have been possible.

A large number of individual contributed to this project. I am thankful to all of them for their

help and encouragement. My writing in the project report has also been influenced by a

number of website and standard textbooks. As for as possible, they have been fully

acknowledged at the appropriate place. I express my gratitude to all of them.

First of all I owe my heartfelt gratitude to my guide Prof. Ms. Nidhi phutela for his noble

guidance throughout the completion of the project.

I would like to extend my heartfelt thanks to Mr. Gaurav Mehandiratta, Asst. Manager of

ITC Pvt. Ltd., Saharanpur Branch for giving me an opportunity to work on this project.

I would also like to thanks Mr. Mukesh pandey , Area Manager of ITC Pvt. Ltd., Haridwar

for his guidance, inspiration, and constructive suggestions, which helped me in the project.

I must also thank the management of ITC Pvt. Ltd. to provide excellent opportunity and

environment to be able to pull my project through. Cooperation of the staff is also gratefully

acknowledged.

Last but not least, also give my sincere thanks to all the people to directly indirectly have help

and encourage me in finding the way to us collecting the requisite information and

completing the project effectively and timely.

Shubham chaudhary

AIT – School of Management, Greater Noida

DECLARATION

I, the undersigned, hereby declare that the Project Report entitled “UNDERSTANDING THE

DISTRIBUTIONSYSTEM OF I.T.C AND COMPETITIVE ANALYSIS.” written and

submitted by me to the APEEJAY INSTITUTE OF TECHNOLOGY- SCHOOL OF

MANAGEMENT, Greater Noida in partial fulfilment of the requirements for the award of

PGDM (MBA) under the guidance of Ms. Nidhi Phutela is my original work and the

conclusions drawn therein are based on the material collected by myself.

SHUBHAM CHAUDHARY

PLACE: - HARIDWAR

Date:-

CERTIFICATE

This is to certify that the “UNDERSTANDING THE DISTRIBUTIONSYSTEM OF I.T.C

AND COMPETITIVE ANALYSIS.”is the bonafide project work done by Shubham

chaudhary student of Apeejay Institute of Technology – School of Management, Greater

Noida during the Summer Internship Training, in partial fulfilment of the requirements for

the award of the Degree of “Post Graduate Diploma in Management” and that the project has

not formed the basis for the award previously of any degree, diploma, fellowship or any

similar title. To the best of my knowledge and belief the project represents independent and

original work on the part of candidate under my guidance.

Name and Signature of Mentor

Name and Signature of Director

INDEX

Contents Page No

Chapter- 1:- Introduction & Profile of the organization 01

ITC PROFILE 08

HISTORY OF ITC 10

ORGANIZATIONAL STRUCTURE 24

AREA OF DIVERSIFICATION 25

SUNFEAST PROFILE 31

Chapter-2:-

HOW ITC TURNED BUSCUITS BUSINESS

DISTRIBUTION SYSRTM OF I.T.C

35

40

Chapter-3:-

Objective of the study 43

Scope of the study 45

Limitation of the study 46

Chapter- 4:-

Chapter- 5:-

Major Competitors of sunfeast biscuit

Research methodology and design

47

55

Chapter- 6:- Data presentation, Analysis, and interpretation 58

Chapter- 7:- suggestions and swot 71

Chapter-8:- Bibliography 80

Chapter-9:- Annexure 82

CHAPTER- 1

Distribution system of I.T.C

CHAPTER- 2

INTRODUCTION

INTRODUCTION

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

India Limited. As the Company's ownership progressively Indianised, the name of the

Company was changed from Imperial Tobacco Company of India Limited to India Tobacco

Company Limited in 1970 and then 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-

business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full

stops in the Company's name were removed effective September 18, 2001. The Company

now stands rechristened 'ITC Limited'.

The Company’s beginnings were humble. A leased office on Radha Bazar Lane, Kolkata,

was the centre of the Company's existence. The Company celebrated its 16th birthday on

August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed

J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was

historic in more ways than one. It was to mark the beginning of a long and eventful journey

into India's future. The Company's headquarter building, 'Virginia House', which came up on

that plot of land two years later, would go on to become one of Kolkata's most venerated

landmarks.

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

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

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

changes in the life of the Company.

ITC's Packaging & Printing Business 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'. The objective of ITC's entry into

the hotels business was rooted in the concept of creating value for the nation. ITC chose the

hotels business for its potential to earn high levels of foreign exchange, create tourism

infrastructure and generate large scale direct and indirect employment. Since then ITC's

Hotels business has grown to occupy a position of leadership, with over 100 owned and

managed properties spread across India.

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

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

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

Company, Bhadrachalam Paperboards Division. In November 2002, this division merged

with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers

Division. ITC's paperboards' technology, productivity, quality and manufacturing processes

are comparable to the best in the world. It has also made an immense contribution to the

development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It

is directly involved in education, environmental protection and community development. In

2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co.

Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve

customer service with reduced lead time and a wider product range.

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

Since inception, its shares have been held by ITC, British American Tobacco and various

independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of

ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal).

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

and a major supplier of tissue paper to the cigarette industry. The merged entity was named

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

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

Papers Division in November 2002.

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

Division for export of agri-commodities. The Division is today one of India's largest

exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000

with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million

farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at

Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of

Madhya Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the

launch of Expressions range of greeting cards. A line of premium range of notebooks under

brand “Paperkraft”was launched in 2002. To augment its offering and to reach a wider

student population, the popular range of notebooks was launched under brand “Classmate” in

2003. “Classmate” over the years has grown to become India’s largest notebook brand and

has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009

saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under

the “Classmate” brand. In 2008, ITC repositioned the business as the Education and

Stationery Products Business and launched India's first environment friendly premium

business paper under the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the

premium executive stationery and office consumables segment. Paperkraft entered new

categories in the office consumable segment with the launch of Textliners, Permanent Ink

Markers and White Board Markers in 2009.

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

the event forward to consumers.

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. Today ITC Infotech is one of India’s fastest growing global IT and IT-enabled

services companies and has established itself as a key player in offshore outsourcing,

providing outsourced IT solutions and services to leading global customers across key focus

verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R

(Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and

Media & Entertainment.

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 eight years, the Foods business has

grown to a significant size with over 200 differentiated products under six distinctive brands,

with an enviable distribution reach, a rapidly growing market share and a solid market

standing.

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

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

popular safety matchesbrands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the

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

include Spriha and Mangaldeepacross 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 (Inizio

Homme) 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 PROFILE

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

US $ 18 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 also ranks among India's top 10 `Most

Valuable (Company) Brands', in a study conducted by Brand Finance and published by the

Economic Times.

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 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-Chou pal' 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, 68,000 shareholders, fulfil 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.

Company History – ITC

1910

- On 24th August the Company was incorporated as a Private Limited Company under the name, Imperial Tobacco Co. of IndiaLtd. The Company manufacture and distribute cigarettes and smoking tobaccos and specialty papers including cigarette issue papers (Sole manufacturer in the country).

1953

- The Company acquired the manufacturing business of Tobacco Manufacturers (India) Ltd.,

and the Complementary Lithographic Printing business of Printers (India) Ltd.

1954

- The Company was converted into a Public Limited Company on 27th October.

1970

- The name of the Company was changed from the Imperial Tobacco Co of India Ltd., to

India Tobacco Co. Ltd., in May.

1972

- On October Company entered into hotel business.

1973

- Company received the approval of Govt. for setting up three Processing plants.

1974

- On 1st April name again changed to I T C Ltd.

1975

- ITC Ltd Purchased the net asset in India of India Leaf Tobacco Development Co. Ltd.

(UK).

1979

The name of the Company's chain of hotels was changed from Welcome Hotels to

Welcomgroup. The company entered into a Marketing Service and Reservations Agreement

with the Sheration International Incorporated which was sanctioned by Govt. on 27th January.

1983

- A new Company under the name Gujarat Hotels was incorporated under a joint venture

agreement signed between the Company and Gujarat Industrial Investment Corporation. This

Co. had set up a 144-room hotel at Vadodara known as Welcome group Vadodara.

1987

- New brands viz., Wills Flake Premium Filter and Scissors Filter were introduced. Long-

term agreements were entered into with the unions of factories located at Calcutta,

Saharanpur and Munger. In Bangalore, however, working was affected by a strike for 114

days.

1988

- In May the company formed a new division called Agribusiness Division for carrying out

research and development on production and distribution of high yielding cultivars with

emphasis on oil seeds, marketing of edible oils in bulk and consumer packs and export of

agricultural produce.

- A Memorandum of Understanding was signed with the authorities to open an Indian

restaurant in Odessa, U.S.S.R.

- Different varieties of oilseeds under the brand name of ADARSH and cooking oil under

SUNDROP were launched.

- New investments were made in water and bulk liquid packaging project. The Company

explored the possibility of setting up a new software development centre in India with ability

to access Company's customers' computers abroad through data communication Links.

- A major part of the business of India Leaf Tobacco Development Co. Ltd., (U.K.) (ILTD)

consisted of its operations in India where it operated as a sister concern of the Company.

ILTD was a pioneer in introducing Virginia tobacco to India and over the year, developed

into a highly efficient enterprise, besides being a very large exporter of tobacco. The

Company purchases, with effect from 1st April, 1975, the net assets in India of ILTD

whereupon it became a division of the Company.

1990

- Refined mustard oil under the brand name REAL GOLD was introduced in the market.

- On 1st April Tribeni Tissues Ltd was amalgamated with the Co.

1992

- Since January there was labour unrest at Tribeni Tissues papermill which led to a lockout at

the mill with effect from 27thMay.

- On 8th April, ITC Global Holdings Pte. Ltd was incorporated in Singapore a wholly

owned trading subsidiary of the Company.

- During the same period a wholly owned subsidiary ITC InfoTech Ltd. Incorporated in UK

with an authorised capital of US $ 2million and paid up capital of US lakh.

1993

- The Company successfully launched Hero brand Cigarettes.

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

length ends respectively.

1995

- Company introduced CAPSTAN Menthol filter, CAPSTAN standard and Bristo standard

and re-designed Gold Flake Kings and Berkley Filter. Further, Gold Flake Lights in King-

size was Introduced into test markets.

1996

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

the year.

1997

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

1998

- ITC has nearly 105 subsidiaries, which are involved in various kinds of operations.

1999

- Tobacco gaint ITC has raised its stake in paper and paperboards subsidiary, ITC

Bhadrachalam Paperboards, from 37% to 51% through a preferential allotment of equity

shares. This follow the allotment, by the board of ITC Bhadrachalam Paperboards, of

1,91,20,000 No. of equity shares of Rs. 10 each for cash, at an issue price of Rs. 65 per share

and 11% redeemable cumulative-preference shares of the face value of Rs100 each, for cash,

at par to promoter company ITC.

- ITC will set up a new tobacco processing department (TPD) because the increased

production will make it economical toprocess tobacco on site.

- The Anaparti factory of ITC Ltd -- ILTD division, received the Rajiv Gandhi National Quality

award for 1995.

2000

- ITC Infotech Ltd, the UK-based, wholly-owned subsidiary of the Company, and Compaq

Computer (I) Pvt. Ltd. signed an MoU aimed at exploring business opportunities for

deploying e-enabled solutions.

- The Company has launched a project e-Choupal in Bhopal to Web-enable farmers to make

a beginning in agricultural e-trade.

- ITC Ltd its entry into retailing business by launching branded leisurewear apparels as part

of its diversification strategy into new areas.

- The Company is hiving off its Infotech services businesses in India, the US and UK and

merging them into a separate wholly-owned subsidiary.

- The IT division has entered into agreements with Compaq and expand the IT business.

- The company set up the Lifestyle Retailing Business Division. A strategic Business Unit for

the greeting cards business was set up under the Packaging and Printing Division.

- ITC has launched Wills Sport, a full range of internationally styled premium wear for men

and women.

- Tobacco Company ITC launched a website, billed as `one stop terminus' for international

customers of agricultural commodities. The website, WWW.itcibd.com, will provide

information on trading of key commodities.

- The Company have set up units in the north-eastern States to avail of special incentives

relating to Central excise duties.

- On 21th August, ITC Infotech India Limited became a wholly owned subsidiary of the

company. Ansal Hotels Limited became a subsidiary of ITC Hotels Limited effective from

12th July.

- The Board of the company has recommended an employee stock option scheme.

-Having carved a niche for itself by launching the first branded lifestyle apparel, Wills Sport,

in Delhi in July 2000, the Lifestyle Retailing Business Division of ITC Limited has now big

plans up its sleeve.

2002

- ITC, Tobacco major, has launched Aashirvaad atta making its foray into Indian atta

market.

- ITC's greetings cards business and Maple Leaf have entered into Joint Venture where

Maple Leaf will exclusively manufacture pop-up cards for ITC.

- ITC Foods and ITC Ltd, is finally foraying its way to the Rs 1,100 crore confectionery

market. The foods division which has shifted office from Kolkata to Bangalore this month

has introduced its first confectionery product, acquired brand Minto in four cities. -ITC

Greeting Cards Business (ITC-GCB), has forayed into stationery products segment with the

launch of Expressions PaperKraft.

-ITC Limited has taken over Wills brand. ITC had to acquire the Wills brand in the US,

before it takes Wills merchandise to America.

-ITC, now moves towards match business, it has diversified into the match business to earn

more revenues from non-tobacco businesses.

2003

-ITC Ltd has informed to BSE that company's Spriha brand of natural incense sticks

(Agarbathis) manufactured by Cottage Industries, a unit of the Sri Aurobindo Udyog Trust in

Pondicherry was launched on February 21, 2003.

-ITC on April 04, introduced salt in the staple segment, as part of its efforts to clock a Rs 500

crore sales in five years. Salt is the second offering from ITC Foods' staple business in the

past 10months, under the brand name of 'Aashirvaad'.

-Commences commercial production of paper using the environment-friendly ECF

(elemental chlorine-free) technology at its Bhadrachalam unit in Andhra Pradesh -Food

wing of ITC eyes on 4 pc market share in biscuit market -ITC unveils new brand of agarbattis

2004

-ITC Food launches a range of 'cooking pastes' under its ready-to-eat gourmet cuisine brand

Kitchens of India and ready meal Aashirwad brand

-Completes the process of acquiring the paperboard manufacturing facility of BILT

Industrial Packaging Co Ltd. (Bipco) near Coimbatore in Tamil Nadu. The facility, renamed

'unit Kovai', will operate as part of the paperboards and specialty papers division of ITC,

which has a unit at Bhadrachalam in Andhra Pradesh.

-ITC unveils Sunfeast biscuits in Chennai

- ITC ties up with Israeli firm for e-channel.

2005

- ITC Ltd becomes one of the very few companies in India to obtain the coveted Quality

Management System certification ISO 9001:2000 for investor servicing.

- ITC Ltd wins 'Golden Peacock Global Award for Corporate Social Responsibility (CSR)

in Emerging Economies for 2005'.

- ITC Ltd signs MoU with Tripura Government for a bamboo development programme.

- ITC unveils new `5-in-1' agarbattis -ITC

unveils `Expressions Regalia'

-ITC e-Choupal gets Development Gateway Award-

ITC unveils Candyman Cofitino

2006

-ITC forges alliance with Tilda for DNA-tested basmati -ITC ties-up with Marubeni for food biz

2007

- ITCLtd. Has informed that the Board of Directors of the Company at the meeting held on

July 27, 2007, appointed :

(i) Mr. A. Baijal, IAS (Retd.), as an Additional Director of the Company, representating the

Specified Undertaking of the Unit Trust of India (SUUTI),

(ii) Mr. D. K. Mehrotra, Managing Director - Life Insurance Corporation of India (LIC) as an

Additional Director of the Company,representing LIC,

(iii) Dr. R. K. Kaul, General Manager - National Insurance Company Limited, as an

Additional Director of the Company, representing General Insurers' (Public Sector)

Association of India,

(iv) Mr. P. B. Ramanujam, as an Additional Non-Executive Independent Director of the

Company, and

(v) Mr. S. B. Mathur, as an Additional Non-Executive Independent Director of the Comp.

- ITC acquires Australian agri-biotech co.

2008

ITC Infotech signs partnership agreement with ADAM Software

ITC InfoTech, a global IT services company and a fully owned subsidiary of ITC Ltd., today signed a partnership agreement with ADAM Software, a leading Digital Asset Management company.

ITC Infotech will provide services around ADAM Software’s Digital Asset Management (DAM) platform. ITC Infotech services will include information architecture modelling and design, ADAM implementation and support, integration with enterprise applications such as portals; rights management etc, digital asset descriptive metadata cataloguing and Web 2.0 based portal development services. With in-depth understanding of how media supply chain works, ITC Infotech is well placed to publish and distribute quality content.

ITC launches eco-friendly "Paperkraft Premium Business Paper

ITC recently launched "Paperkraft Premium Business Paper", an environment friendly paper

which has been crafted by ITC using a pioneering technology, which is first of its kind in

India called "Ozone Treated Elemental Chlorine Free technology".

Paperkraft is a superior and environmentally friendly, multipurpose paper for office and

home use, which lets you exercise your power to "Go Green". This unique product is an

integral part of ITC’s significant initiatives to augment natural and scare resources and has

been launched in line with ITC’s triple bottom line commitment to building economic,

environmental and social capital for the nation.

Yet another addition in ITC’s wide array of differentiated FMCG products, Paperkraft

Premium Business Paper has been created by ITC to provide consumers an opportunity to

partner in our efforts to mitigate the adverse impact of climate change and create a positive

environmental footprint. In terms of quality, Paperkraft offers a superior value proposition

since it is the whitest and brightest 75 GSM business paper manufactured in India. A

proprietary chemical treatment has enabled it to become an eco- friendly paper with a higher

archival life.

2009

ITC’s Hotel Royal Gardenia becomes the world’s largest LEED Platinum rated Green Hotel

-- first Hotel in India to achieve this recognition

ITC’s new luxury hotel in Bengaluru, the ITC Hotel Royal Gardenia was conferred the

highest rating for green buildings in the world – the LEED India Platinum Rating. This

recognition makes it the world’s largest platinum rated hotel and is yet another manifestation

of ITC’s leadership in Sustainability Practices. ITC is the only company in the world to be

carbon positive, water positive and solid waste recycling positive.

The LEED Platinum Rating for the ITC Hotel is one greener milestone close on the heels of

the ITC Green Centre in Gurgaon which was the world’s first largest green building. This

Centre was chosen by the US Secretary of State Hillary Clinton to announce her vision on

Indo-US collaboration on Climate Change during her last visit to India. After a tour of the

building she called it the “Monument to the Future”. ITC’s exemplary commitments to green

practices have also enabled its hotel in Kolkata – the ITC Hotel Sonar to be the only hotel in

the world to earn carbon credits. In keeping with the ITC Commitment to the “Triple

Bottomline” philosophy, ITC Hotels has aspired to be an ‘exemplar’ in the service sector and

truly provides leadership to positive environmental action in a sustainable manner.

The ITC Royal Gardenia is an inclusive blend of contemporary design and international

green practices, a beacon in a bustling urban environment. Built on the ethos of “Responsible

Luxury” the hotel has adopted contemporary ‘Green Practices’ that harness the element of

nature in an inspired setting to deliver unique guest experiences.

According to Chief Executive, ITC Hotels Division, Nakul Anand, “The ITC Royal Gardenia

exemplifies ITC’s vision and is perhaps the perfect example of finding common rhythm

between manmade and natural environment. The challenge was to see how luxury and

responsibility could be in harmony together. Thus a series of sustainable measures and

practices were embraced to ensure that elements of nature were effectively harnessed at every

level inside the luxury hotel”.

ITC creates mobile version of Corporate Website

ITC is among the first Indian companies to launch a mobile version of its Corporate Website

-www.itcportal.mobi This unique endeavour by ITC, aims to enhance stakeholder

engagement by leveraging multiple channels of communication that can deliver maximum

value to Internet users.

With the increasing reach of mobile phones in India and Internet navigation rapidly becoming

a common feature on majority of cell phones, the mobile version of ITC’s corporate website

will offer convenience of accessing information instantly and a superior surfing experience.

 www.itcportal.mobi can now be accessed by millions of active mobile Internet users in the

country and abroad. Optimized for fast download, the easy-to-navigate website is designed

for any mobile that supports WAP2.0 and has a screen resolution of 320 x240 pixels.

This new initiative from ITC will not only make information search easier and relevant for

the mobile internet user but will also enable proactive engagement with stakeholders by

reaching out to them with news alerts, product and service offers. The launch of the mobile

version is a strategic shift from an existing information-providing format to a proactive

communication mode that is more meaningful in today’s environment of rapidly evolving

communication technologies.

ITC Infotech launches services for seamless migration to Windows 7 in partnership with

Microsoft

ITC Infotech, a global IT services company and fully owned subsidiary of ITC Ltd., has

launched services to help customers migrate seamlessly to the latest Windows 7. The

company has partnered with Microsoft to offer services around Microsoft’s Application

Compatibility Framework (ACF).

Mr. Jake Braly, Group Manager – US BMO, Microsoft, said, “ITC Infotech has been a

valued partner in the Application Compatibility PoC Program since May 2009.” 

ITC Infotech has developed a methodology to help customers mitigate application issues

around Windows 7, through Microsoft’s proven ACF framework. In association with

Microsoft, ITC Infotech will work with customers in resolving compatibility issues. Some of

the key business benefits of the ACF include packaged assessment, enablement through

technical training and remediation of business critical applications.

2010

ITC’s Fiama Di Wills unveils the new Anti Hair Fall Shampoo

The Mantra to feel young!

After storming the market with the innovative transparent gel bathing bars which won the

‘Product of the Year’ award recently, Fiama Di Wills, ITC’s personal care brand, has

launched yet another innovative product for its consumers - The Anti – Hairfall Shampoo

& Conditioner, in Chennai today. The new variant was unveiled by the glamorous Brand

Ambassador Deepika  Padukone at a high decibel launch event. The new anti -

hairfall Shampoo combines the goodness of Nature and Science that ensures gentle

care while fighting hairfall effectively.  Fiama Di Wills Anti Hairfall Shampoo

promises reduced hairfall due to breakage in just three washes. The shampoo has been

launched in Tamil Nadu and will soon be extended to more markets.

The Fiama Di Wills Anti-Hairfall Shampoo is unique as it offers consumers the goodness of

Brazil  Nut, found in the Amazon Forests and the effectiveness of science with the Hair  

restore Technology. Brazil nut, is known to seal in hair moisture giving it shine and a silky

smooth texture. It also helps renew dry and lifeless hair. The Hair Restore Technology,

developed at the ITC R&D Centre, helps repair cuticles and restore the protective lipid layer

to reduce further damage. This strengthens hair and reduces hair fall due to

breakage. The Anti-hairfall Conditioner also enriched with Brazil Nut extracts and the

hair restore technology gives best results when used with Fiama Di Wills  Anti-Hairfall

Shampoo.

Atul Joshi, Head of Marketing, Personal Care Products Business, ITC Limited, said “Hair

Fall is a serious concern for everyone and also has a severe impact on the individual’s psyche

as it adds years to one’s appearance.  We are glad to present a different Anti Hairfall

Shampoo that has been developed through extensive research at our R&D centre to formulate

the innovative Hair Restore Technology. We are confident that consumers will definitely like

the experience of the combined goodness of the exotic Brazil Nut and the Hair

Restore Technology to give them the mantra to feel young! I urge the consumers to try our

product and experience the difference. “

Deepika Padukone, Brand Ambassador for Fiama Di Wills said, “I am delighted to announce

the launch of the new Fiama Di Wills Anti Hair Fall Shampoo & Conditioner here in

Chennai. The range has grown to introduce variety of solutions for every kind of hair

and address a wide range of hair problems.   I have been using Fiama Di Wills’s products

since its inception and can confidently say that they are true to their promise. Beautiful hair is

every woman’s dream and the new shampoo with the goodness of Brazil Nut and Hair

Restore Technology is designed to provide an answer to hairfall.”

ITC Infotech Achieves Platinum Partner status in the Oracle(R) PartnerNetwork

ITC Infotech, a global IT services & Solutions Company and a fully owned subsidiary of

ITC Ltd., has achieved 'Platinum Partner' status as part of the Oracle Partner Network (OPN)

program. This prestigious recognition as a platinum partner is an acknowledgment of the

expertise and excellence in ITC Infotech’s superior and differentiated capabilities across the

entire suite of Oracle solutions. 

Mr. Tyler Prince, Group Vice President, North America Sales, Applications and Public

Sector Alliances and Channels, Oracle, said, "The Oracle Partner Network program

acknowledges partners that demonstrates excellence in helping our mutual customers reach

their full business potential. We are happy to provide ITC Infotech with this distinction in

recognition of their efforts towards administering diverse Oracle platforms and applications

across global IT business environments. We look forward to engaging with ITC Infotech

across a variety of industries to provide cutting-edge solutions." 

ITC completes 100 years

Kolkata: ITC completed a 100 years  on  the  24th  of  August, 2010. A glorious moment  in

its history, the occasion was marked by celebrations across all its offices and facilities in

India, with Company flag-hoisting ceremonies to commemorate  and  pay  homage to the

spirit of the institution.

At a special Centenary event, in Kolkata, Chairman Mr. Y C Deveshwar,  addressing  a

29,000 strong audience of employees across the country through a webcast,  said  that:

"Innovation  should  be a source  for  creating  consumer delight as well as triple  bottom  line

performance so as to generate greater value for the shareholder and the society. Value 

creation  for  the  Indian  society is best achieved  by  creating sustainable livelihoods and

replenishing  natural capital." Emphasising on the need for competitive vitality,  Chairman 

Mr Deveshwar underscored the need to leverage knowledge  resident  across  diverse

businesses in its   world class   human  resources  to  create "Champion  Teams" that would

continuously innovate to  deliver competitively superior customer value. He  reiterated  his 

firm  belief  that the unique amalgam  of  ITC’s Vision, Values and Vitality has ensured that

the Company is ‘Future-ready’

ITC Hotels becomes the greenest luxury hotel chain in the world

- All ITC’s luxury hotels are now LEED® Platinum rated -

All ITC’s luxury hotels have been accorded the highest rating: LEED Platinum (Leadership

in Energy and Environmental Design) making it the ‘greenest luxury hotel chain in the

world’. This distinction is an endorsement of ITC Hotels’ credo of ‘Responsible Luxury’ - an

ethos that integrates world class green best practices with contemporary design elements to

deliver the best of luxury in the greenest possible manner. The Responsible Luxury

commitment of ITC Hotels blends elements of nature to deliver a unique value proposition to

discerning guests, conscious of their responsibility to be planet positive.

In addition to the wide spectrum of environment friendly measures that ITC Hotels

implement, the ITC group’s carbon positive, water positive and solid waste recycling positive

status ensures that a guest’s stay at any of its luxury hotels contributes to a lower carbon

footprint.   

ITC Hotels’ commitment to Responsible Luxury has given it the unique distinction of being

the greenest luxury hospitality chain in the world. Today, all ‘ITC Hotels’- ITC Maurya, New

Delhi; ITC Maratha; Mumbai; ITC Grand Central, Mumbai; ITC Sonar, Kolkata; ITC

Windsor, Bengaluru; *ITC Gardenia, Bengaluru; ITC Kakatiya, Hyderabad and ITC

Mughal, Agra are rated LEED Platinum by the U.S. Green Building Council (USGBC), for

their commitment to perform to the highest standards of energy, water and waste efficiency

and continuing to provide inspiration to the Green Building movement in India. (*Rated

LEED Platinum by Indian Green Building Council-IGBC)

Commenting on the distinction, Nakul Anand, Executive Director, ITC Ltd. said, “This

coveted feat uniquely positions ITC as the first hotel chain in the world to have all its

premium luxury hotels accorded the highest rating: LEED Platinum by USGBC. It

exemplifies the credo of ‘Responsible Luxury’ adopted by ITC’s Hotels Division – delivering

globally benchmarked quality, services and luxury in the greenest possible manner.”

2011

Government of India honours ITC Hotels with ‘Best Employer’ National Award for

Empowerment of Persons with Disabilities

The Government of India, Ministry of Social Justice and Empowerment has conferred ITC

Hotels with the 2011‘Best Employer’ National Award for Empowerment of Persons with

Disabilities. The award was presented by Minister of Social Justice and Empowerment, Shri

Mukul Wasnik, in recognition of ITC’s philosophy of an ‘equal opportunities’ employer in

keeping with its policy to ensure respect for Human’s Rights and Prevention of

Discrimination at Workplace. Dipak Haksar, Chief Operating Officer, ITC Hotels received

the award at a ceremony held at Vigyan Bhawan in New Delhi on December 3, 2011.

ITC Hotels’ human resources approach, in keeping with ITC’s core values, promotes

diversity and offers equality of opportunity to all employees fostering meritocracy in the

organisation. It acknowledges that every individual brings a different and unique set of

perspectives and capabilities to the team. A discrimination-free workplace for employees

provides the environment in which diverse talents can bloom and be nurtured. This is

achieved by ensuring that a non-discrimination policy and practice is embedded across the

Company in line with corporate principles and benchmarked business practices.

2012

AIMA confers the Business Leader of the Year Award on Mr Y C Deveshwar, Chairman ITC

For over 5 million people, many of whom represent the poorest in Rural India. His vision to

make ITC a global exemplar in Sustainability practices has led ITC to become the only

company in the world, of comparable size to be ‘carbon positive’, ‘water positive’ and ‘solid

waste recycling positive’. Mr Deveshwar's commitment to put Country before Corporation

has not only inspired innovative business models that contribute meaningfully to societal

development, but has also led to the creation of world-class Indian brands across ITC's

businesses.

Earlier, Mr Deveshwar was honoured with one of the highest civilian awards- the Padma

Bhushan by the Government of India in 2011. Amongst several other awards and

recognitions during his distinguished career, he has also been honoured with the Global

Leadership Award by the US-India Business Council of the US Chamber of The All India

Management Association (AIMA), India's apex body of professional management today

conferred its Business Leader of the Year Award on Mr Y C Deveshwar, Chairman, ITC

Limited at a function held this evening in New Delhi to commemorate the AIMA Managing

India Awards 2012.

Fiama Di Wills Men pioneers a new trend

Unveils the Fiama Di Wills Men website in a first-of-its-kind web debut in India

‘”Innovation” is the foundation of all initiatives at Fiama Di Wills leading to creation of

innovative products and engaging brand experiences. It manifests in ITC’s leading personal

care brand Fiama Di Wills continuous strives to create hallmarks of consumer trust through

its range of unique bath care products and brand experiences.

ITC in Saharanpur

ORGANIATION STRUCTURE

Branch Manager

ASSISTANT MANAGER ASSIATANT MANAGER ASSISTANT MANAGER

(FOOD) (PCP) (CIGARATTE)

AM AM AM (AREA MANAGER)

AE AE AE (AREA EXECUTIVE)

Area of diversification

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 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. The major areas

in which ITC has diversified are:

FMCG

Cigarettes

Food

Lifestyle Retailing

Greetings and stationer

Safety Matches

Incense sticks

Hotels

Paperboards and Packaging

Paperboards and specialty paper packaging

Agri-Business

Agri- exports

E- choupal

Information Technology

ITC in FMCG Sector

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, NavyCut, 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.

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- won solutions. In west

Asia,ITC has become a key player in the GCC markets through growing volumesofitsbrands.

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 level of quality, contemporary technology

and work environment.

Foods

Ready to Eat:

Keeping alive long forgotten culinary traditions, ‘Kitchens of India’ presents its range of

ready-to-eat cuisines. Each one of these legendary delicacies has been created by Master

Chefs of ITC Hotels, following rare, closely guarded recipes, handed down through the

ages, from one generation to the next

Bukhara

Bukhara, a village in Uzbekistan, was a meeting place for the traders from Asia and Europe.

It was also a spot on the fabled Silk Route, a passage commonly used by traders, scholars and

nomads. It was on this route that the unique Bukhara style of cooking was born.

The Master Chefs of ITC Hotels have whipped up the delectable bite into history with this

cuisine from the North-West Frontier Province with a masterpiece like dal Bukhara.

Dal Bukhara

Dal Bukhara is an exquisite culinary treat made from whole black lentils simmered with

prized indian spices over a coal fire, for long hours on end.

Sunfeast (Biscuits)

In 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie and

Cream Biscuits. Sunfeast’s brand essence, "Spread the Smile" connotes happiness,

contentment, satisfaction, and pleasure. The mascot sunny reinforces the emotional aspects of

the brand. In span of 6 year sunfeast has launched many new variants and has its presence in

almost all types of biscuit categories.

Sunfeast immediately established itself as a provider of innovative and distinctive products -

Sunfeast Marie was launched in an innovative orange flavour and the 'Sunfeast Dream

Cream’ range includes new flavours as well as flavour enhancers. The Sunfeast Dream

Cream range is currently available in 8 variants. The Company has also introduced

‘Sunfeast Dark Fantasy', a dark chocolate and vanilla cream offering for the premium

segment in select markets.

Riding on the success of its initial offering, ITC also entered the milk biscuit category with

Sunfeast milk magic biscuit. Apart from milk which helps mental growth, these biscuit also

contain the finest quality wheat adding physical growth.

In the last two years, the Sunfeast biscuits portfolio has been enhanced to include salted

crackers and cookies. The 'Sun feast Snack' salted crackers are available in 2 unique variants

– ‘Chilli Flakes’ and ‘Classic Salted’. Sunfeast's latest offering, 'Sunfeast Special’

biscuits are also available in select markets. The Sunfeast Special range currently includes

cookies in two variants– Butter and Cashew, as well as cream biscuits in two variants –

Choco and Orange. The sunfeast product portfolio has been further expanded to include

healthy snacks option. Sunfeast pasta treat is whole wheat based instant pasta for children

After a tremendous success of the 4 initial flavours, the instant pasta range has been expended

with two new exciting flavours – pizza, and chicken. The pasta segment was further

expanded with the launch of sunfeast benne vita in 4 innovative variants.

Confectionary:-

ITC currently has two brands in the confectionery segment - 'mint-o' and 'Candy man'. '

Mint-o' was acquired by ITC from Candico in March 2002. ITC re-launched the compressed

mint offering, across all major markets in India, with new and improved product

and packaging. Available in the regular mint flavour with added blue specks to enhance

consumer experience, mint-o is also offered in innovative 'Orange mint' and 'Lemon mint'

flavours. 'mint-o' is available in two sizes – rolls of 20 and 6, capturing the international

essence of ‘youthful cool’ ITC launched the 'Candy man' range of confectioneries in August

2002. Led by the 'Candy man Fruitee Fun' range of assorted fruit flavours ('Wild Banana',

'Pineapple Punch', 'Orange Josh' and 'Mango Delite'), the 'Candy man' portfolio now

includes deposited candy products like 'Candy man Butterscotch Licks' and 'Candyman

Éclairs' (Choco flavoured as well as Vanilla Cream centre inside a Butterscotch

outer shell). The coffee toffee segment also saw the successful launch of 'Candyman

Cofitino' in November 2005. Two new products – 'Candyman Natkhat Mango' and

'Candyman Maha Mango' were launched recently. The 'Candyman' range of confectionery is

targeted at ‘fun-filled, naughty kids’ who seek a delightful candy experience through a

range of candy types and flavours.

Bingo!

ITC's new snacks brand Bingo! Marks the company's foray into the fast growing branded

snacks segment. The launch of Bingo! Represent ITC fifth major line of foods business after

highly successful staples, biscuit, Ready to eat and confectionary business. The launch of

Bingo! is symbolic of ITCs' distinct approach of introducing innovative and differentiated

products in a largely undifferentiated market place.

The initial offerings from Bingo! include an array of products in both Potato Chips & Finger

Snacks segment. The Potato Chips offerings comprise four innovative variants inspired by

the snacking habits of different parts of the country as well as masala, salted and tomoto

flavors.Additionally, a south- inspired dairy option has also been introduced under the potato

chips offering.

ITC in Agricultural Industry

ITC's International Business Division (IBD) is the country's second largest exporter of

agri-products with exports of over Rs. 1000 Crores (Rs. 10 billion). Its domestic sales

of agri-products are in excess of Rs. 1500 Crores (Rs. 15 billion). It currently focuses on

exports of :

Feed Ingredients- Soyameal

Foodgrains – Rice (Basmati & Non basmati), wheat, pulses

Edible Nuts – sesame seeds, HPS Groundnuts, castor oil

Marine products – Shrimps and prawns

Processed fruits – Fruit purees/ concentrates, IQF/Frozen fruit, organic fruit, Fresh fruits

Coffee & Spices – coffee, Black pepper, Chilly, Turmeric, Ginger, Celery, and other seed

spices.

Although one of the relatively younger business divisions of ITC, it has, in a short span

established itself as a first-choice supply chain partner of several leading international

customers. Its major customers include Cargill, marubeni, Toepfer, among others, who source

agriculture commodities and food products from India. Its customer relationship management

has enabled it to achieve a very high reputation for quality, reliability and value added

services.

ITC's unique strength in this business is the extensive backward linkages it has

established with the farmers. This networking with the farming community has enabled ITC

to build a highly cost effective procurement system. ITC has made significant investments in

web-enabling the Indian farmer. Christened 'e-Choupal', ITC's web plan for the farmer

centres around providing internet kiosks in villages. Farmer use this technology infrastructure

to access on- line information from ITC’s farmer friendly website. Data access by the farmers

related to the weather, crop condition, best practices in farming, ruling international prices

and a host of other relevant information.

Currently, the 'e-Choupal' website - www.echoupal.com - provides information to farmers

across the nine States of Madhya Pradesh, Haryana, Uttaranchal, Uttar Pradesh, Rajasthan,

Karnataka, Maharashtra, Andhra Pradesh and Kerala. ITC plans to extend the 'e-Choupal' to

cover 10 million farmers across 100,000 villages covering 15 Indian states. ITC’s

International Business Division, one of India’s largest exporters of agricultural commodities,

has conceived e-Choupal as a more efficient supply chain aimed at delivering

value to its customers around the world on a sustainable basis.

STRATEGIES OF ITC

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

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

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

backed by strong corporate governance policies and systems. • Create multiple

drivers of growth by developing a portfolio of world class businesses that best

matches organizational capability with opportunities in domestic and export markets.

ITC’s corporate strategies are

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

Packaging, Agri Business and Information Technology • Benchmark the health of each

business comprehensively across the criteria of Market Standing, Profitability and Internal

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

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

diverse skills and capabilities residing in ITC’s various businesses • Create distributed

leadership within the organization by nurturing talented and focused top management teams

for each of the businesses. • Continuously strengthen and refine Corporate Governance

processes and systems to catalyses the entrepreneurial energies of management by striking

the golden balance between executive freedom and the need for effective control

accountability.

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

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

environment, delivering superior and sustainable stakeholder value

Sun feast profile

Snack foods

Sunfeast

In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie

and Cream Biscuits. Sunfeast’s brand essence, "Spread the Smile" connotes happiness,

contentment, satisfaction and pleasure. The mascot Sunny reinforces the emotional aspects of

the brand. In a span of 6 years Sunfeast has launched many new varieties and has its presence

in almost all types of biscuit categories.

Sunfeast Milky Magic

Packed with goodness of milk these deliciously nutritious crisp and crunchy biscuits are a

favourite among mothers and kids. Milky Magic has the ‘power of 2’ - A perfect balance of

energy that aids physical strength and mental ability. These biscuits strike the right balance of

milk and wheat which helps in an all round development and nurturing of the child.

Sun feast Marie

Sun feast Marie Light:

This ideal teatime biscuit is made from the finest quality wheat high

in fibre and keeps one light and healthy through the day.

Orange Marie:

It has the distinction of being one of the most successful innovative

Marie biscuits and is liked by one and all.

Sun feast Golden Bakery

Sunfeast Golden Bakery is a premium cookie on an innovative and differentiated platform.

Launched nationally in March 2008, these cookies are made from the recipes crafted by the

master bakers of ITC Hotels and are slowly baked in the traditional way till they are golden

brown and develop the crispy broken crust texture. The Sunfeast Golden Bakery cookies are

available in three distinct flavours - Butter-Nut, Butterscotch and Choco-Nut cookies. These

products are designed to give consumers a rich & truly indulgent experience.

Sun feast Dark Fantasy

Inspired by the Master Chefs of ITC hotels, it is the richest of chocolate

vanilla biscuits. These biscuits are created using carefully chosen

premium ingredients for a sensory experience unlike any other. Dark

Fantasy is more than a biscuit; it’s a luxurious mix of aromatic cocoa and

vanilla.

Sun feast Glucose

For those light hunger pangs, a wholesome & nutritious choice as these golden brown

biscuits is made from the best quality wheat. Sunfeast Glucose biscuits are ideal not just for

kids but adults too.

Sun feast Dream Cream

A truly scrumptious range of cream biscuits that have become an instant hit with children.

ITC’s chefs have put their legendary skills into these biscuits to deliver truly tasty cream

biscuits. Special Flavor Crystals in Strawberry and Pineapple cream biscuits keep the creamy

flavor linger on.

Strawberry Cream

Bourbon

The first of its kind cream biscuit with a special delight for all those chocolate special

strawberry flavor crystals that will lovers.

Orange Cream & Butterscotch Cream

Experience a tangy twist in biscuits with Another first, the taste of ice-cream in every

Orange cream cream biscuits.

Mango Cream & Elaichi Cream

A special summer flavour cream biscuits Taste the queen of spices in cream for all

those who love the king of fruits biscuits.

Sunfeast Snacky

Bigger than most others in the salted biscuit category, Snacky is light and crispy like no

other. From kids to adults, it’s the quintessential ‘Family Biscuit’. Available in two variants,

Classic salted and Chilli flakes - the very first of its kind in India.

Sunfeast sweet 'n salt

These thin and crisp biscuits come with a distinctive sundry taste, that of salt and sweetness.

A bite into one of these one keeps wondering about its taste!

Sunfeast Nice

These are crisp coconut biscuits showered with sugar crystals. The crisp sugary sweetness

will just go on to make all those nice moments nicer.

Sunfeast Benne Vita Flaxseed Biscuits

If Benne Vita in Italian stands for ‘Good Life’, then Benne Vita Flaxseed biscuits just make

the good life better. The Flaxseed content in these protein and mineral enriched biscuits are

rich source of Omega III acids that helps control cholesterol. Flaxseed is the richest plant

source of these essential Omega-3 Fatty Acids. It is also rich in dietary fibre, proteins,

calcium and other minerals to maintain healthy heart and good gut health.

Sunfeast Special

ITC Sunfeast presents a range of Special cookies and creams.

Special Cookies:

Made with best quality wheat, cashew and butter, Sunfeast Special cookies are baked with

real butter and the finest ingredients to give a mouth-watering treat that makes every moment

special. Available in Cashew/ Butter/ Coconut.

Special Creams:

Delicious value for money cream biscuits with a thick layer of cream sandwiched between

two biscuits. Available in Orange and Chocolate variants.

Sunfeast Pasta

The Sunfeast product portfolio was expanded in early 2005 to include healthy snacking

options as well.

Sunfeast Pasta Treat, a whole wheat based instant pasta was introduced as a healthy snacking

option for children and young adults. After the tremendous success of the 4 initial flavours,

(Masala, Tomato Cheese, Cheese and Sour Cream), the instant Pasta range has been extended

with three new exciting flavours - Pizza style, Chicken and Tangy Tomato.

How ITC turned biscuits business around.

Biscuits and tea in the morning were a routine. So were the key market players and their

favourite products. The two major players Britannia [Get Quote] and Parle were busy biting

of chunks of the national market among themselves, with a host of smaller brands in various

regions.

While the business was still very competitive, there wasn't anything groundbreaking. In 2003,

with ITC foraying into the segment, a lot of that changed. At that time, Britannia and Parle

held, between them over 82 per cent of the market in value terms. The rest too was firmly

held by smaller players like Priya Gold which had a strong presence in the north. So, in

essence, the market already had strong well entrenched players. So how could a late entrant

like ITC make its mark? Six years down the line, however, things have changed a lot. It is a

classic story of the hare and the tortoise. While it is far from winning the race, slowly and

steadily, the tortoise is gaining ground. The late entrant is already on the podium in the third

place with as much as 7 per cent

of the market in terms of value. "ITC made hay when the sun wasn't shining," says a

consultant who's been tracking the industry for a long time. But first, why did ITC train its

eye on biscuits? Ravi Naware, chief executive, ITC Foods, makes it sound simple. "We

decided to enter the foods segment because it's a Rs 550,000 crore (Rs billion) market in

India. But only 6 per cent of this is branded and packaged. In developed markets, nearly 95

per cent of the food market is branded and packaged. So there was lot of scope for a branded

player In foods, biscuits was tempting. The Rs 4,000-crore (Rs billion) Indian biscuits market

has grown at 12-14 per cent year-on-year. Then, there was a business synergy. ITC was

already value-adding to wheat with its branded atta presence. By entering the biscuits

segment, it could also improve its bottomline further. But despite the fast growth rates, the

biscuits industry was not all rosy. Over the years, even giants like Hindustan Lever had

failed. For instance, HLL which had flirted with biscuits under the Max brand exited in 2005.

But ITC's Sunfeast has a different story to tell so far. the strategist looks at the gameplan of a

late entrant and how the biscuits industry has responded.

New recipe

Before entering the segment, ITC dug into market research. Research revealed that the

category had gaps which ITC could settle into. Findings revealed that consumers wished to

taste new and innovative products. That was precisely what the competition had not done in a

big way. Says Naware, "The biscuits industry had witnessed little innovation; Glucose was

Glucose and Marie was still Marie." The company decided that this could be its biggest point

of attack. In 2003, ITC launched Sunfeast with six ranges. But it was a calculated risk. ITC

stuck to category favourites like Glucose, Marie and Bourbon cream Along with that, it also

launched innovations such as orange-flavoured Marie, Marie light and butterscotch-flavoured

cream biscuits. In 2004, Sunfeast followed this up with the launch of Sunfeast Milky Magic.

More recently, it also has launched the Sunfeast Snacky and Sunfeast Golden Bakes.

Analysts believe that just because Sunfeast was a new brand, helped matters. Says a

consultant, "The biscuits industry had not witnessed any major product innovation in years.

Consumers were just waiting for something new, something fresh, when Sunfeast happened."

Even the competition had not made things better. Between 2000 and 2005 neither Parle nor

Britannia launched any major new product. Yes, Britannia did re-launch its Tiger brand in

2005.

But Britannia claims that it is looking at more than just products. Richa Arora, general

manager and head of marketing and innovations, Britannia Industries, says, "We are not just

looking at new products, but tapping newer opportunities -- such as different occasions as

well as out-of-home consumptions."

In 2005, before Diwali, Britannia launched Occasions -- boxes of assorted biscuits priced

between Rs 50 and Rs 200 -- which the company claims has been very successful.

In 2006, however, the industry has seen a flurry of innovations from the big two. Digestive

Marie -- was launched by Parle in early February 2006. Britannia launched its new double-

flavoured Mariegold and 50-50 Chakkar. And Parle is all set to launch at least two new

products before the end of this year.

Distribution maze

It's common knowledge, that for FMCG products, distribution channels are very important.

Says Pravin Kulkarni, general manager, marketing, Parle Products, "For biscuits, distribution

and visibility are extremely important as it's partly a impulse purchase product." And in

biscuits, setting up a distribution channel is anything but easy. Consider this. Priya Gold,

which entered the western region in 2000, is struggling to find its feet even eight years later.

However, in this regard, Sunfeast has been fortunate: thanks to its tobacco business, ITC

already had a good understanding of distribution channels. The company used its existing

network of convenience stores -- the company's name for the hole-in-the-wall pan-beedi

shops -- for Sunfeast. Not content with the existing resources, the company also looked at

grocery stores and other retail formats. The company says the brand is now available in

nearly 1.8 million outlets. Britannia claims it has a superior distribution clout with its

presence in nearly 3.3 million outlets. Parle, the seasoned player itself, says it is available in

1.5 million outlets. Sunfeast's next step was to step up its branding and promotion.

Ad thrust

In August 2003, a month after its launch, the company undertook a major sampling exercise

to promote the product. For two years then, the brand did all the usual rounds -- riding behind

buses, blocking television spots, booking that corner space in your favourite newspaper and

so on.

Well differentiated advertisements, some which showed a complete cream world with cream

rivers, cream mountains and cream trees, were targeted at kids watching cartoon channels.

At the same time, on general entertainment channels, mothers received information on the

importance of glucose, the wholeness of wheat and so on. Also, the company tied up with

Bey Blades, the popular television series that was a rage among children, to promote itself.

In April 2005, Sunfeast launched its major campaign. It signed on Hindi film actor, Shah

Rukh Khan as its brand ambassador.

In the same year, as the official sponsor of the WTA tennis championship -- titled the

Sunfeast Open -- the company had teenage sensations Sania Mirza and Mahesh Bhupathi

campaigning for it. But that's not all. For promotions in southern states, Sunfeast has signed

Tamil super star Surya as a brand ambassador.

Analysts say that ITC's deep pockets have helped Sunfeast in many ways.

The company claims that it has been spending 35-40 per cent of its turnover from the biscuits

segment on advertising and promotions. Going by that number, ITCs annual marketing

spends are estimated to be in the region of about Rs 115-120 crore (Rs billion).

Until last year, Priya Gold spent close to Rs 45-50 crore (Rs billion), nearly 10 per cent of its

turnover on marketing. Even market leader Britannia with spends of Rs 100 crore (Rs billion)

(2004-05) spends about 10 per cent of sales on marketing.

But Arora says that the figure will increase substantially in 2006-07. ITC is clearly among

the largest spender on ads and promotions in the biscuits category.

Analysts predict that these figures are all set to rise this year. But industry experts aren't

impressed. Says a consultant, "Although Sunfeast's Shah Rukh Khan Association is

interesting, it is yet to do something groundbreaking, like Britannia khao world cup jhao or

the Lagaan promotion for that matter."

Pricing models

The biscuits industry now has two clear models. Parle products play the low price game at all

varieties of biscuits from glucose to cream. Essentially, Parle plays a high volume, low

margin game. But Britannia and Sunfeast look at a two-pronged strategy. High margins in

cream variants and volumes from the Marie and Glucose segments.

For instance, cream biscuits from both Britannia and Sunfeast cost Rs 10 for 100 grams.

Parle, however, only charges Rs 5 for its cream variants. Except for Hide & Seek, all of

Parle's products lie in the price range between Rs 4 and Rs 6 for 100 gram packs. To be fair,

in Glucose and Marie, the companies have little choice. As there is little differentiation,

consumers are extremely price sensitive. But these segments are important. Marie and the

popular glucose varieties make up for nearly 55 per cent of the Rs 4,000 crore (Rs billion)

biscuits segment -- a significant Rs 2,200 crore (Rs billion). Says Sunil Alagh, chairman,

SKA Advisors, and former CEO of Britannia Industries, "the biscuit consumer is willing to

pay more only when he sees a clearly differentiated product. Hence companies have little

choice in terms of pricing." No wonder all the Glucose and Marie variants straddle price

points of Rs 4-6 (for 100 grams)

Key challenges

Back in 2003, nobody thought Sunfeast would have consumers eating out of its hands. Says

Naware, "Seven per cent in less than three years is something that we could have only dreamt

about."

Importantly, industry barometer AC Nielsen has indicated that both Parle and Britannia are

losing market shares. According to the AC Nielsen retail sales audit in March 2006, both

Britannia and Parle have lost volumes. Britannia's shares have dropped from 35.8 per cent in

2004-05 to 30.5 per cent in May 2006 (volumes). Parle's shares have also dropped from 42.2

to 38.4 per cent in the same period.

Even Priya Gold has seen a minor dip from 6.4 per cent to 5 per cent. ITC's Sunfeast has been

a big gainer with its share increasing from 2.7 to 6.7 per cent.

In terms of value, Britannia leads the market with 37 per cent market share, followed by

Parle's 31.3 per cent and ITC's 6.3 per cent. Nevertheless, the gap is still wide. Sunfeast still

has a long way to go.

But what can the bigger players do? Alagh has an interesting observation. Says he, "Biscuits

have always been a low margin, high volume game. Both Britannia and Parle have very high

volumes and can easily afford to lower their margins."

A potential after-effect? Sunfeast too may have to drop its prices to be in the reckoning and

this will squeeze its margin even lower. While the full game is yet to be played outfor the

moment the sun seems to be shining on Sunfeast.

CHAPTER- 3

RESEARCH METHODOLOGY

OBJECTIVE, SCOPE

&

LIMITATION

RESEARCH METHODOLOGY

This chapter describes the methodology of the study. This project is based on information

collected from primary sources. After the detailed study, an attempt has been made to present

comprehensive analysis of performance of ITC sunfeast biscuit versus britinnia and parle,

consumed by the people. The data had been used to cover various aspects like

consumption, retailer’s preference and retailer’s satisfaction, regarding Sunfeast Britinnia

and Parle. In collecting requisite data and information regarding the topic selected, I went to

the retailers of hatidwar and collected the data.

Survey design:

The study is a cross sectional study because the data were collected at a single point of time.

For the purpose of present study a related sample of population was selected on the basis of

convenience.

Sample Size and Design:

A sample of 100outlet was taken on the basis of convenience. The retailers were contacted

on the basis of random sampling

Research Period:

Research work is only carried for 2 or 3 weeks.

Research Instrument:

This work is carried out through self-administered questionnaires. The questions included

were opening ended, dichotomous and offered multiple choices.

Data Collection:

The data, which is collected for the purpose of study, is divided into 2 bases:

Primary Source: The primary data comprises information survey of

“UNDERSTANDINGTHESALE SYSTEM OF I.T.C ANCOMEPARITIVE

ANALYSIS OF SUNFEAST BISCUIT, BRITANNIA & PARLE”. The data has been

collected directly from respondent with the help of structured questionnaires. Secondary

source: the secondary data was collected from internet and reference from library.

Data Analysis:

The data is analyzed on the basis of suitable tables by using mathematical techniques. The

technique that I have used is bar graphs.

Object of the project

Defining the objectives is the most crucial part of the research. If the objectives are not clear

the researcher cannot identify the problem and thus cannot find a way of the problem.

This project is based on the study of relative performance towards ITC sunfeast, Britannia

and parle biscuits.

Objectives of the study are:

1. To study the company (ITC LTD) profile, product line, and SKUs of Sunfeast biscuits.

2. To study the relative performance of Sunfeast biscuit versus Britannia and Parle.

3. To study the visibility, supply, distribution channel, promotional activities, of Sunfeast in

market.

4. To study the retailer’s preferences, margin, product awareness and perception.

5. To know about the organizational hierarchy of ITC LTD.

Scope of the study

As learning is a human activity and is as natural, as breathing. Despite of the fact that

learning is all pervasive in our lives, psychologists do not agree on how learning takes place.

How individuals learn is a matter of interest to marketers. They make aware to the customer

about their product, quality, benefits and promotional activities. They want to teach retailers

in their roles as their roles as consumers. They want retailers to learn about their products,

product attributes, potential consumers benefit, how to use, maintain or even dispose of the

product and new ways of behaving that will satisfy not only the consumer’s needs,

but the marketer’s objectives.

The scope of my study restricts itself to the analysis of the visibility, supply, distribution

channel, promotional. There are many other brands of biscuit available but my study is

limited to three major players of buscuit leaving behind the others. The scope of my study is

also restricts itself to Haridwar region only.

Limitations of the study

In attempt to make this project authentic and reliable, every possible aspect of the topic was

kept in mind. Nevertheless, despite of fact constraints were at play during this project. The

main limitations are as fellow:-

1. Due to limitation of time only few outlet were selected for the study. So the sample of

retailers was not enough to generalize the finding of the study.

2. The main source of data for the study was primary data with the help of self-administered

questionnaires. Hence, the chances of unbiased information are less.

3. People were hesitant to disclose the true facts.

4. The chance of biased response cannot be eliminated though.

CHAPTER- 4

DISTRIBUTION SYSTEM OF ITC

DISTRIBUTION CHANNEL OF ITC

CONSUMER

WHOLESELLER RETAILER

DISTRIBUTER SALESMAN

WHOLESALE DISTRIBUTER

W.S.P

MANN

UFACTURING PLANT

DISTRIBUTION CHANNEL OF ITC

ITC provides products and services of superior quality and value by sourcing its technologies,

equipment and inputs from reputed international and Indian manufacturers and suppliers.

Common values, relating to human rights performance, are shared across the entire supply

chain because ITC is committed to the importance of a socially responsible and accountable

supply chain.

As a large and multi-product enterprise whose products are benchmarked nationally and

internationally, ITC's main supply chains can be grouped as follows:

1. For all its operations, technology, machinery and equipment are sourced from reputed

and globally benchmarked suppliers/vendors who are expected to follow

internationally accepted norms and standards on human rights.

2. ITC's major businesses are vertically integrated across several Divisions. A

substantial part of the supply chain is therefore internal through strategic backward

linkages. Common values relating to human rights performance are shared across this

supply chain.

3. Being a major agric-based company, the agriculture sector is a major supplier of

inputs for its operations. The bulk of agricultural commodities are procured from state

controlled trading platforms and the open market.

A very small proportion of ITC's business consists of supply chains comprising local vendors

and suppliers. The policy framework for such entities is enunciated separately in 'Policy to

Ensure Respect for Human Rights across the Supply Chain'

Operations at the WD shop

WD Constitution and its Importance

Every WD firm has a constitution, which is a legal document that authorizes the owner

to carry out the ITC distribution business under a specified enterprise name, accompanied

with a specimen signature of the Proprietor and manager. In case, the firm has partners, they

have to give a certification by the 1st of January every year.

POP Register and Uses

POP register is a monthly record of the quantity of different types of POPs at the

WD godown. This is prepared at the end of every month, and a copy is also sent to the

branch.

The POP register can be used to check whether the Cycle plan inputs were given. This is

basically a track of the POP given and thus can be used if the POP provided was used

properly at the focus markets.

D and D Register

The D& D register is a record of amount and value of D&D of different brands (SKU

wise), that is held by a given WD at any point of time. The WD can claim for the amount

from the company. This register can be used to track the amount of D & D, which is being

received, and if it is large a corrective action may be initiated. Once every quarter, a company

official (AM) inspects the D &D. The different types of D &D have been described earlier.

Binders of the AE’s.

It consists of the following different parts:

Industry Summary Volume

This records the total food industry ---a detailed summary of ITC, competition and transit

trade both market share and market wise. Along with the previous two years it also shows the

quarterly, monthly and yearly average performance. This can be used to keep a track over the

industry as a whole and the trends---- the change in market share, growth rate by vol. etc

Total Consolidated Brand Card

The brands are segmented into KSFT, RSFT, LONGS, PLAINS and BINGOS and the

performance of the brand for the past 4 years (avg) and monthly analysis of each brand in the

current year is recorded. This is used to track the trends brand-wise i.e. to check which brand

is moving etc. If the brand sales are decreasing, we have to see to which brands have these

sales shifted to and then figure out the reason .e.g. an increase in prices leading to

downgrading.

Weekly sales Analysis

It gives the % sales per week of the total sales of the month. Ideally for the first 3 weeks it

should be 7/30*100 (23.3%) and 10*100/30 for the last week(30%) depending on whether the

month is 30 or 31 day month. A deviation of 2% of the above value may be allowed.

Industry Brand Segment Analysis

This is similar to the Total Consolidated Brand Card, but is done for the competition

brands and is used to check their trends and the brands –wise changes in sales and try to

correlate the changes with the comparable brands of ITC.

Volume by POP Groups

This gives the total food industry volume in each of the different POP groups market of

the section. This is used to understand and track how a particular POP group is behaving and

the sales trends there--- and can be used to determine if an action specific to that POP ought

to be taken.. The performance in the past years is also given for performance comparison..

Stock Position Report

Stock Position Report is sent by the WD at the end of every week and is basically an account

of the brand-wise

Opening SOH

Closing SOH and its value.

Track Receipts and Transfers at the WD point.

Volume and the value of sales made in last week and cumulative sales for the month

Remittances made by the WD to date

The oldest Stock date at the WD (to check the freshness of the stock).

The D & D of each brand to date.

A comparison of the Last Month sales and ECD to the sales to date can be made to check the

performance

The closing SOH is done as:

Closing Stock = Opening Stock - Sales this week + Receipts – Transfers.

This is done brand wise and multiplied by the price to determine the value of SOH.

Role of the Supervisor

Implement trade-marketing activities at the outlet level.

He is an aid to sell out and thus increase the customer sales.

Train DS---He is responsible for his territory and thus sets target for the DS, training

and motivating him.

Business advice to the customer.

Steps of the Call of the Supervisor:

Preparation

He checks outlet details prior to the call and set objectives for every call. To meet these

objectives he organizes his resources.

Approach

Visually collects and records information about environment of the outlet and observes the

inside (for POP, visibility, Foods etc) and outside(for on-shop displays) of the outlet.

Stock Check

He looks at the availability of the products (own and competition) and examines their stock

levels, to track trends and check whether the required pipeline is there or not. To ensure the

stock freshness he also ensures that the appropriate code date product is there stock). He also

ensures that stock rotation and FIFO is being carried out.

.

DS Call

A DS call is also given to each outlet once a week. This call is made along with the relevant

hawker on the route and is a sort of training and performance checks of the hawker. On this

call he checks the SOH, the code date and takes up other issues

ROLE OF A DS

DS---- Distribution to the retailers.

A DS may be an independent businessman or employed by the WD generally for deep inland

markets.

How does a DS start his day?

Picks up stock from the WD point according to his requirement for the route.

Takes care of bills to be issued

Takes up the issues of the day

The DS covers 30 outlets on his route. The activities of the DS have been divided into

suitable rote and collect the order .

CHAPTER- 5

MAJOR COMPETITORS OF SUNFEAST BIACUIT

MAJOR COMPETITORS OF SUNFEAST BUISCUIT

BRITANNIA

PARLE

ABOUT BRITANNIA

COMPANY PROFILE-

The company enjoys a share of 32% in the market in terms of volume. Started way back in

1892 with an investment of Rs. 295, biscuits were manufactured in a small house in central

Kolkata. Later, the business was acquired by the Gupta brothers and operated under the name

of V.S. Brothers. In 1918, C H Holmes, an English businessman in Kolkata was taken as a

partner and ‘The Britannia Biscuit Company Limited (BBCo)’ was launched. The Mumbai

factory was setup in 1924 and Peak Freans, UK acquired a controlling interest in BBCo.

Biscuits were in big demand during World War II, which gave a fillip to the company’s sales.

BBCo celebrated its golden jubilee in 1968 and the company name was changed to the

current Britannia Industries Limited in 1979. In 1982 Nabisco Brands Inc., USA became a

major foreign shareholder. Ten years later in 1992, Britannia Industries Limited celebrated its

platinum jubilee. The following year, the Wadia Group acquired a stake in ABIL, UK and

became an equal partner with Groúpe Danone in Britannia Industries Limited.

Product

Britannia has restructured its portfolio of products at regular intervals. This strategy has

enabled it to serve the key needs of the Indian consumer across age groups and diverse

consumption situations, through an optimum range of brands. The success of this strategy

enabled Britannia to reduce the number of focus-brands from 24 in 1998, to nine in 2001.

All its product offerings derive their premium qualities from the principles of health and

taste. This key premise has led to the evolution of a lifetime menu where a Britannia product

exists for every stage in a person’s life. The highest consumption group for biscuits are

children; here Britannia offers Milk Bikis with all the ‘goodness of milk’ required by younger

kids, while the Tiger brand is aimed at 7-14 year olds and provides them with the exuberant

health required by ‘winners of tomorrow’. Another offering for children – Treat, a range of

delicious cream biscuits – is meant as a treat for children during fun times.

A particularly notable success has been Little Hearts, meant for teenagers and kids, to target

group which did not snack on sweet biscuits. The company moved into the mass market for

biscuits introducing low priced varieties under the umbrella, Tiger.

PRODUCT RANGE

50:50

MARIEGOLD

BOURBON

PURE MAGIC

NICE

GLUCOSE-D

GOOD DAY

SNAX COCONUT CRUNCHIES

Achievements

Britannia is synonymous with the rise and growth of the biscuit industry in India

It brought the health dimension to an industry that was traditionally driven by taste alone.

This is reflected in Britannia’s brand slogan, introduced in 1997 that exhorted consumers to

‘Eat Healthy, Think Better’. This was quickly embraced by the entire industry to come up

with similar promotional campaigns showing biscuits to be an epitome of a healthy, happy

diet.

Britannia’s products retail in over 2 million outlets selling approximately 200 million packs a

month. With millions of happy consumers every month, Britannia is considered to be one of

the most trusted food brands in India. Britannia has also successively made the Forbes List of

200 Best Small Companies in the world for the years 1999, 2000 and 2002.

The four metros account for 65% of the sales of Britannia. Britannia industries has acquired

49% stake in Kwality Biscuits.

DISTRIBUTION CHANNEL OF BRITANNIA

MAN

NUFACTURING PLANT

DEPO

WHOLESELLER RETAILER

CONSUMER

DISTRIBUTER

SALESMAN

ABOUT PARLE

Parle enjoys a 43% share of the total biscuit market. A long time ago, when the British ruled

India, a small factory was set up in the suburbs of of Mumbai city, to manufacture sweets and

toffees. Despite the odds and unequal competition, this company called Parle Products,

survived and succeeded, by adhering to high quality and improvising from time to time.

A decade later, in 1939, Parle Products began manufacturing biscuits, in addition to sweets

and toffees. Having already established a reputation for quality, the Parle brand name grew in

strength with this diversification. Parle Glucose and Parle Monaco were the first brands of

biscuits to be introduced, which later went on to become leading names for great taste and

quality.

Parle is the second largest producer of biscuits in the organized sector. In the popular brands

segment, its Parle G remains a popular brand in the glucose biscuit segment AND IS

WORLD’S LARGEST SELLING BRAND OF BISCUIT. In the premium segment, its HIDE

& SEEK is attracting competition due to the sway it holds in the market place.

In the saltish biscuits, Monaco has been quite popular, especially in the cocktail circuit.

PRODUCT RANGE-

HIDE & SEEK

PARLE-G

PARLE-G MAGIX

PARLE-G MILK SHAKTI

KRACKJACK

MONACO

MARIE CHOICE

MONACO BITES

FUN CENTRE

ACHIEVEMENTS-

Be it a big city or a remote village of India, the Parle name symbolizes quality, health and

great taste! This reputation has been built, by constantly innovating and catering to new

tastes. This can be seen by the success of new brands, such as, Hide & Seek.

In this way, by concentrating on consumer tastes and preferences and emphasizing Research

& Development, the Parle brand grows from strength to strength.

The extensive distribution network, even in the most remote places and in the smallest of

villages with a population of just 500. Parle has nearly 1,500 wholesalers, catering to

4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force

services these wholesalers & retailers. Additionally, there are 31 depots supplying goods to

the wide distribution network..

Designing products that provide nutrition & fun to the common man. Most Parle offerings are

in the low & mid-range price segments. This is based on our cultivated understanding of the

Indian consumer psyche. The value-for-money positioning helps generate large sales volumes

for the products.

Parle-G sells the most because it is the cheapest biscuit in the branded category. Most Parle

offerings, unlike Britannia, are mass brands in the low and mid-range price segments. As it

has been around for over 60 years, it has a loyal consumer base

However, Parle Products also manufactures a variety of premium products for the up-market,

urban consumers. And in this way, caters a range of products to a variety of consumers

DISTRIBUTION CHANNEL OF PARLE

MAN

NUFACTURING PLANT

WAREHOUSE

WHOLESELLER RETAILER

CONSUMER

STOCKEST

SALESMAN

CHAPTER- 6

DATA ANALYSIS AND INTERPRETATION

BASED ON RETAILER

ANALYSIS OF THE STUDY ON RETAILER

Q1 Which company give you batter margin.?

a) I.T.C. b) Parle

c) Britannia d) Other

I.T.C. Parle Britannia Other21

22

23

24

25

26

27

28

Series 1Series 2Series 3series 4

From the above analysis of given sample of 100 respondents it is concluded

that out of 100 people 27 people are says Britannia give the better margin I.T.C says 26

people , 24 people says parle and 23 people says other.

Q2. Which company exchange your defected products immediately?

a) I.T.C. b) Parle

c) Britannia d) Other

I.T.C. Parle Britannia Other0

5

10

15

20

25

30

35

Series 1Series 2Series 3series 4

From the above analysis of given sample of 100 respondents it is concluded

that out of 100 people 28 people are says Britannia exchange the defacted product

immediately ,I.T.C says 22 people , 30 people says parle and 20 people says other.

.

Q3. Are you satisfied with the service of ITC company?

a). Yes b). No

Yes No

From the above analysis of given sample of 100 respondents it is concluded

that out of 100 people 90 people are satisfied wih the I.T.C service and 10 people are not

satisfied of I.T.C service

Q4. Which company provide better service?

a) I.T.C. b) Parle

c) Britannia d) Other

I.T.C Parle Britannia Other0%

5%

10%

15%

20%

25%

30%

Series 1Series 2Series 3

From the above analysis of given sample of 100 respondents it is concluded

that out of 100 people 28% people says I.T.C provide better service , 26%says parle and

24% Britannia ,22% other

Q 5. How do you come to know about sunfeast biscuit?

FACTORS

NUMBER OF

RESPONDENTS

ADVERTISEMENT 60

FAMILY / FRIEND 20

RETAILER 15

ANY OTHER 5

ADVER-TISEMENT

FAMILY / FRIEND

RETAILER ANY OTHER0

10

20

30

40

50

60

70

NUMBER OF RESPONDENTS

NUMBER OF RESPONDENTS

From the above analysis of given sample of 100 respondents it is concluded

that out of 100 people 60 people know sunfeast biscuit through

Advertisement while 20 people through family and 15 people follow by

Retailers

Q 6. which brand of biscuits you prefer to stock?

SunfeastParleBritanniaOthers

From the above chart we can infer that 33% of the retailers favors Parle Britannia 20% of the

retailers favors Britannia, 17% favors Sunfeast and the rest of them favors other brands.

Q7. What is the time gap between order capture and delivery?

I.T.C parle Britannia other0

10

20

30

40

50

60

70

80

90

sameday1 days2 days3days

sameday 10 50 60 01 day 82 30 22 652 days 8 20 28 153 days 0 0 0 20

This chart explains that the time gap between order capture and delivery is maximum in day 1

and for some on the second day.

Q8 Have you ever tried Sunfeast?

Yes ___

No ___

yesNo

From the above analysis of given sample of 100 respondents it is concluded

that out of 100 people 97 people says yes and rest of no .

Q9. Which flavours does you like the most?

SUNFEAST GLUCOSE BISCUITS ______

SUNFEAST MARIE LIGHT ______

SUNFEAST CREAM BISCUITS ______

SUNFEAST SPECIAL BUTTER ______

SUNFEAST SPECIAL CEASEW ______

SUNFEAST BOURBON CREAM ______

SUNFEAST DARK FENTESY ______

SUNFEAST GLUCOSE

BISCUITS

SUNFEAST MARIE LIGHT

SUNFEAST CREAM

BISCUITS

SUNFEAST SPECIAL BUTTER

SUNFEAST SPECIAL CEASEW

SUNFEAST BOURBON

CREAM

SUNFEAST DARK

FANTESY

0%

5%

10%

15%

20%

25%

Series 1Column1

From the above analysis of given sample of 100 respondents it is concluded

that out of 100 people most like sunfeast glucose and sunfeast cream.

Q10. Compared to other BISCUITS (such as PRIYAGOLD BISCUIT

, BRITANNIA, and PARLE etc.) That are available, would you say that Sunfeast is?

Much better ___

Some Better ___

Same ___

Some Worse ___

Much Worse ___

Much better Some better Same Some Worse Much Worse0

5

10

15

20

25

30

35

40

45

50

From the above analysis of given sample of 100 respondents it is concluded

that out of 100 people 44 people says Much better ,25says Some better,20 Same.8 Some

worse,3says much worse.

Q11 Before switching on to Sunfeast, which BISCUITS (did you prefer?

PRIYAGOLD BISCUIT _________

BRITANNIA _________

PARLE _________

priyagould Britannia Parle05

1015202530354045

Series 1

Series 1

From the above analysis of given sample of 100 respondents it is concluded

that out of 100 people 40people says parle ,32says Britannia and rest of says priyagold.

Q12. What do you like about Sunfeast?

Taste ___

Quality ___

Price ___

Quantity ___

Packaging ___

taste quality price quantity packaging0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Series 1

From the above analysis of given sample of 100 respondents it is concluded

that out of 100 people 28%people says taste ,42%says quality and3%

price,16%quanyity,10%packaging.

CHAPTER- 7

SWOT ANALYSIS,

FINDINGS AND RECOMMENDATION

FINDINGS

1. Most of the people prefer low price of biscuit.

2. Cream biscuit are most preferred between customers.

3. Most of the people prefer the Britannia biscuit.

4. People switch over the other brands for to change the taste.

5. People are aware of Sunfeast brand through media and they are aware that they are

the ITC product.

6. Sunfeast customer like its biscuit due to its quailty.

7. Sunfeast biscuit packaging is preferred over other brand like Britannia and Parle.

8. Sunfeast biscuit are available at customer neighbourhood.

9. Customer of Sunfeast biscuit feel that the price may be lower to in hence the market

share.

10. Retailer are satisfied with the service of I.T.C.

11. I.T.C delivery system is some low.

12. Somecompaney give the more margin

13. Exchange the defacted product immediately.

SWOT ANALYSIS

STRENGTHS:

1. ITC is one of India's foremost private sector companies.

2. ITC leveraged it traditional businesses to develop new brands for new segments. . For

example, ITC used its experience of transporting and distributing tobacco products to

remote and distant parts of India to the advantage of its FMCG products. ITC master chefs

from its hotel chain are often asked to develop new food concepts for its FMCG business.

3. ITC ranks among India's top 10 Most Valuable (Company) Brands.

4. It has market capitalization of nearly US $ 18 billion.

5. ITC has a diversified presence in Cigarettes, Hotels, Paper boards & Specialty

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

Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG

products.

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

WEAKNESSES:

1. The company’s original business was traded in tobacco. ITC stands for Imperial

Tobacco Company of India Limited. It is interesting that a business that is now so

involved in branding continues to use its original name, despite the negative connection of

tobacco with poor health and premature death.

2. To fund its cash guzzling FMCG start-up, the company is still dependent upon its tobacco

revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is

responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast

Moving Consumer Goods) is being subsidized by its tobacco operations. Its Gold Flake

tobacco brand is the largest FMCG brand in India - and this single brand alone holds 70%

of the tobacco market.

OPPORTUNITIES:

1. Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be

developed using strategies of market development, product development and marketing

penetration.

2. E- Choupal is a community of practice that links rural Indian farmers using the Internet.

This is an original and well thought of initiative that could be used in other sectors in many

other parts of the world. It is also an ambitious project that has a goal of reaching 10 million

farmers in 100000 villages. Take a look at

e-choupal.http://www.itcportal.com/agri_exports/e-choupal_new.htmITC leverages e-

Choupal in a novel way.

3. The company researched the tastes of consumers in the North, West and East of India of

atta (a popular type of wheat flour), then used the network to source and create the raw

materials from farmers and then blend them for consumers under purposeful brand names

such as Aashirvaad Select in the Northern market, Aashirvaad MP Chakki in the Western

market and Aashirvaad in the Eastern market. This concept is tremendously difficult for

competitors to emulate.

4. Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate into the

country's premier FMCG business. Per capita consumption of personal products in India is

the lowest in the world offering an opportunity for ITC’s soaps, shampoos and fragrances

under their Wills brand.

THREATS:

1. The obvious threat is from competition, both domestic and international.

2. ITC’s opportunities are likely to be opportunities for other companies as well. Therefore

the dynamic of competition will alter in the medium-term. Then ITC will need to decide

whether being a diversified conglomerate is the most competitive strategic formation for a

secure future.

3. Duplicate items are available in abundance at much lesser rates. This affects the

company financially and adversely affects its goodwill.

SUGGESTIONS AND RECOMMENDATION

1. Company should concentrate more on television for advertisement, as mostly people get

attracted through television only.

2. For promotional offers, company should go for free gifts rather than going for other ways.

3. Parle company should concentrate on its packing as people are least satisfied with it while

ITC sunfeast should concentrate on the shape of their candy.

4. Retailer are unsatisfied with the price and quantity of sunfeast so companies should

concentrate in this regard also

.

5. Competitors can play the low price game as they have volumes to support

6. Requrarley cheek the Ds activity and the doing the market with the ds and make the more

outlet.

7. Company should be improve the taste of classic masala noodles.

Work Processes

A daily attendance record to be maintained for salesman at the WD point. This would

help in tracking the time the DS spends at the WD point before leaving for the market

and help to minimize the wastage of time and inefficiencies while issuing stocks.

A daily stock chart should be displayed and feed into the Palm-top carried by DS, that

would provide information as regard the SOH for various categories and the expected

arrival time for the next set of deliveries. This would make the DS aware of SOH of

various categories and facilitate accurate order booking. This is important, as a large

number of respondents feel that our DS undertake orders without being aware of

supply of stocks and hence we have low OTIF levels at retail outlets.

Delivery chart to be prepared the previous evening and stocks to be sorted

accordingly. This would help to minimize time for loading of stocks into the delivery

vehicle the next morning.

DS Incentive should be at the end of the month on basis of TLSD, especially for slow

moving categories.

D&D tracking should be undertaken for retail outlets also. This would help to

ascertain outlets where are stocks are not moving and also help to understand the

stock trends for particular routes.

DSR should be monitored on a weekly basis by the AE.

GLOSSARY

DS:- DISTRIBUTOR SALES MAN

OTIF:- ON TIME IN FULL

WD:- WHOLESALER DEALERS

SOH:- STOCK ON HOLD

TLSD:-TIME LEVEL STOCK DELIVERY

DSR:- DIALY STOCK REGISTER

D&D:- DISTRIBUTION AND DELIVERY

AE:- AREA EXECUTIVE

POP:- POINT OF PURCHASE

CHAPTER 8

CONCLUSION

CONCLUSION

After conducting the survey we are in a position to say that ever since its Sunfeast as a

preferred brand is on a rise.

It is concluded that mostly people preferred ITC sunfeast cream biscuit due

to its flavour/taste, quality and image. Some people often like to have a biscuits with good

flavour, quality and crunchiness so they are going towards biscuits of sunfeast due to its taste

and.

For promotional offers, company should go for free gifts rather than going for other ways

ITC needs to improve its working primarily on the service and delivery front. The

company is also suffering as OTIF levels are very low, and this lack of regular supply

is turning retailers against our products.

During the visit into the market, it was found that in most of the shops, the complaints

against old stock being delivered were registered, which constitute a major portion of

the D&D stock. So, to get rid of it, ITC should work upon their logistic system and

stock reach the market soon and will also reduce dissatisfaction level among the

retailers as well as consumers against expired stock.

POP & Display activities should be on regular basis.

ITC is facing still competition from parle G in particular because of its low price and

high awareness in lower segment of customers.

BIBLIOGRAPHY

BIBLIOGRAPHY

1. BOOKS/MAGAZINES REFFERED

Marketing Management by “Philip kotler”

2. WEBSITES REFFERED:

http://www.itcportal.com

WWW.project paradise .com

WWW. Scribed.com

ANNEXUR

PROJECT REPORT ON UNDERSTANDING THE DISTRIBUTION SYSTEM OF I.T.C

ANCOMPETITIVE ANALYSIS OF SUNFEAST BISCUIT, BRITANNIA & PARLE

I am Shubham chaudhary, student of PGDM-IV trimester from AIT-School of

Management, Greater Noida. I am doing field survey on “UNDERSTANDING THE

DISTRIBUTION SYSTEM OF I.T.C ANCOMPETITIVE ANALYSIS” for knowing the r

Retailer preference towards branded biscuit in market.” Please cooperate and help me by

giving your valuable answer to the Questionnaire given below. Which help me in reaching to

my goal?

This document will be kept confidential and will not be shared with anyone. The study is

purely academic and it is a part of our curriculum of PGDM course.

PERSONAL PROFILE

OUTLATE NAME _ ----------------------------------------------------------------

Address_ ----------------------------------------------------------------------------------

Contact No_ ------------------------------------------------------------

QUESTIONNAIRE

Q1 Which company give you batter margin.?

a) I.T.C. b) Parle

c) Britannia d) Other

Q2 Which company exchange your defected products?

a) I.T.C. b) Parle

c) Britannia d) Other

Q3. Are you satisfied with the service of ITC Company?

a). Yes b). No

Q4. Which company provide better service?

a) I.T.C. b) Parle

c) Britannia d) Other

Q5. How do you come to know about sunfeast biscuit?

a). Advertisement b). Family/ friend c). Retailer d). Any

Others.

Q6. Which brand of biscuits you prefer to stock?

a) Britannia b) Parle c) ITC d) Others

Q7. What is the time gap between order capture and delivery?

Same Day 1 Day 2 Day 3 Day More than 3 days

ITC

Britannia

Parle

Q8 Have you ever tried Sunfeast?

Yes ___

No ___

Q9. Which flavours does you like the most?

SUNFEAST GLUCOSE BISCUITS ______

SUNFEAST MARIE LIGHT ______

SUNFEAST CREAM BISCUITS ______

SUNFEAST SPECIAL BUTTER ______

SUNFEAST SPECIAL CEASEW ______

SUNFEAST BOURBON CREAM ______

SUNFEAST DARK FEANTEY ______

Q10. Compared to other BISCUITS (such as PRIYAGOLD BISCUIT

, BRITANNIA, and PARLE etc.) That are available, would you say that Sunfeast is?

Much better ___

Some Better ___

same ___

Some Worse ___

Much Worse ___

Q11 Before switching on to Sunfeast, which BISCUITS (did you prefer?

PRIYAGOLD BISCUIT _________

BRITANNIA _________

PARLE _________

Q12. What do you like about Sunfeast?

Taste __

Quality ___

Price ___

Quantity ___

Packaging ___