Final Project
Final Project
Final Project
Submitted to The Rashtrasant Tukdoji Maharaj Nagpur University, In partial fulfillment of the requirement for the award of degree of Master of Business Administration (MBA)
CHAITANYA BAHU UDDESHYIA SANATHAS INSTITUE OF MANAGEMENT &RESEARCH KHAPARKHEDA, NAGPUR 2010 2012
This is to certify that Mr. ASHWAJEET ASHOK LOKHANDE, a student of Post Graduate Degree batch of 2010-2012 Chaitanya Bahu Uddeshiya Sastha, Institute of Management and Research (CBSIMR), Nagpur has successfully completed his project on A STUDY ON SALES AND DISTRIBUTION OF ITC WITH RESPECT TO AASHIRVAAD ATTA
Acknowledgement
It is my pleasure to place on record my sincere gratitude towards my guide Mrs. Meena Rajesh, who spent her precious time providing continuous ideas and expert guidance to my project work. It was her direction and encouragement at every moment and step that motivated me to steer the research work confidently and successfully. I am also grateful to principal Dr. Ravindra Aher for his encouragement, moral support and the valuable guidance. I am indebted to my respected parents because of whose blessings I have been able to carry out this work successfully. I am also thankful to all those who have directly or indirectly helped me for this project work
(Signature)
UNDERTAKING
I, Ashwajeet A. Lokhande hereby undertake that the project work entitled A STUDY ON SALES AND DISTRIBUTION OF ITC WITH RESPECT TO AASHIRVAAD ATTA Is my own work and to the best of my knowledge and belief is not submitted to any university for any degree.
Signature
Ashwajeet Lokhande
(C.B.S.I.M.R)
TABLE OF CONTENT
Chapter 1
Introduction
Chapter 2
Company Profile About ITC History of the Company Product Line About Aashirvaad atta Competitors
Chapter 3
Objectives
Chapter 4
Hypothesis
Chapter 5
Chapter 6
Research Methodology
Chapter 7
Chapter 8
Chapter 9
Conclusion
Chapter 10
Bibliography
Chapter 11
Annexure
Chapter 1 INTRODUCTION
ABOUT SALES
A sale is the act of selling a product or service in return for money or other compensation.It is an act of completion of a commercial activity.
The seller' orsalesperson the provider of the goods or services completes a sale in response to an acquisition or to a request. There follows the passing of title (property or ownership) in the item, and the application and due settlement of a price, the obligation for which arises due to the to seller's pass
requirement
ownership. Ideally, a seller agrees upon a price at which he willingly parts with ownership of or any claim upon the item. The purchaser, though a party to the sale does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the price, the sale remains valid and gives rise to an obligation to pay.
SALES TECHNIQUES
A sale can take place through: Direct sales, involving person to person contact Pro forma sales Agency-based Sales agents (for example in real estate or in manufacturing) Sales outsourcing through direct branded representation Transaction sales Consultative sales Complex sales Consignment Telemarketing or telesales Retail or consumer Traveling salesman Door-to-door methods Hawking Request for proposal An invitation for suppliers, through a bidding process, to submit a proposal on a specific product or service. An RFP usually represents part of a complex sales process, also known as "enterprise sales". Business-to-business Business-to-business ("B2B") sales are much more relationship-based owing to the lack of emotional attachmentto the products in question. Industrial/professional sales involves selling from one business to another Electronic Web Business-to-business ("B2B") and business-to-consumer ("B2C") Electronic Data Interchange (EDI) A set of standard for structuring information to be electronically exchanged between and within businesses Indirect, human-mediated but with indirect contact Mail-order Vending machine
ABOUT DISRIBUTION
Product distribution (or place) is one of the four elements of the marketing mix. An organization or set of organizations (go-between) involved in the process of making a product or service available for use or consumption by a consumer or business user. The other three parts of the marketing mix are product, pricing, and promotion.
Managerial concerns
The channel decision is very important. In theory at least, there is a form of trade-off: the cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer goodsmanufacturers could never justify the cost of selling direct to their consumers, except by mail order. Many suppliers seem to assume that once their product has been sold into the channel, into the beginning of the distribution chain, their job is finished. Yet that distribution chain is merely assuming a part of the supplier's responsibility; and, if they have any aspirations to be marketoriented, their job should really be extended to managing all the processes involved in that chain, until the product or service arrives with the end-user. This may involve a number of decisions on the part of the supplier: Channel membership Channel motivation
Channel motivation
It is difficult enough to motivate direct employees to provide the necessary sales and service support. Motivating the owners and employees of the independent organizations in a distribution chain requires even greater effort. There are many devices for achieving such motivation. Perhaps the most usual is `incentive': the supplier offers a better margin, to tempt the owners in the channel to push the product rather than its competitors; or a compensation is offered to the distributors' sales personnel, so that they are tempted to push the product.
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In much the same way that the organizations own sales and distribution activities need to be monitored and managed, so will those of the distribution chain. In practice, many organizations use a mix of different channels; in particular, they may complement a direct sales-force, calling on the larger accounts, with agents, covering the smaller customers and prospects. These channels show marketing strategies of an organization. Effective management of distribution channels requires making and implementing decisions in these areas.
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ABOUT ITC
Type Traded as
Henry Overton Wills Kolkata, West Bengal, India Yogesh Chander Deveshwar, (Chairman)
Products
Tobacco, Hotels, Paperboards& specialty papers, packaging, agribusiness, packaged foods&confectionery, IT, branded apparel, personal care, stationery, safety matches and other FMCG products
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ITC Limited (BSE: 500875) or ITC is an Indian publicconglomerate company headquartered in Kolkata, West Bengal, India. Its diversified business includes four segments: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards, Paper & Packaging and Agri Business. ITC's annual turnover stood at $7 billion and market capitalization of over $33 billion. The company has its registered office in Kolkata. It started off as the Imperial Tobacco Company, and shares ancestry with Imperial Tobacco of the United Kingdom, but it is now fully independent, and was rechristened to Indian Tobacco Company in 1970 and then to I.T.C. Limited in 1974. The company is currently headed by Yogesh Chander Deveshwar. It employs over 26,000 people at more than 60 locations across India and is listed on Forbes 2000. ITC Limited completed 100 years on 24 August 2010. 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.
HISTORY
The company had founded-pioneered canteens for the workers, free medical care, sports facilities and paid holidays. In 1830, the company was renamed W.D. & H.O. Wills. Their first brand was Bristol, made at the London factory from 1871 to 1974. Three Castles and Gold Flake followed in 1878 and Woodbine ten years later. In 1901 Sir William Henry Wills formed the Imperial Tobacco Company from a merger of W.D. & H.O. Wills with seven other British tobacco companies. Imperial remains one of the world's largest tobacco companies. Embassy was introduced in 1914 and relaunched in 1962 with coupons. The last member of the Wills family to serve the company was Christopher, the great great grandson of H.O. Wills I. He retired as sales 1969.
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Core values
ITC's Core Values are aimed at developing a customer-focused, high-performance organization, which creates value for all its stakeholders:
Trusteeship
As professional managers, we are conscious that ITC has been given to us in "trust" by all our stakeholders. We will actualize stakeholder value and interest on a longterm sustainable basis.
Customer Focus
We are always customer focused and will deliver what the customer needs in terms of value, quality and satisfaction.
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Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.
Innovation
We will constantly pursue newer and better processes, products, services and management practices.
Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals, we will make no compromise in complying with applicable laws and regulations at all levels.
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INDIA TOBACCO FOOD DIVISION LIFESTYLE RETAILING BUSINESS PERSONAL CARE PRODUCT STRATEGIC BUSINESS UNIT EDUCATIONARY & STATIONARY PRODUCT STRATEGIC BUSINESS UNIT SAFETY MATCHES STRATEGIC BUSINESS UNIT AGARBATTIS STRATEGIC BUSINESS UNIT HOTEL DIVISION PAPER BOARD & SPECIALITY PAPER DIVISION PACKAGING & PRINTING STRATEGIC BUSINESS UNIT AGRI BUSINESS DIVISION
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AASHIRVAAD AATA
Aashirvaad is a brand of staple food and kitchen ingredients owned by ITC Ltd.. The Aashirvaad range of products includesAtta, Salt, Spices and Instant mixes.
AATA
ITC entered the branded Atta market with the launch of Aashirvaad Atta in Jaipur and Chandigarh on 26 May 2002. The product is now available all over India. The Aashirvaad package is PET Poly, with the design showcasing the farming process undertaken in the rural heartland of India in the form of a Madhubani painting.
ITC entered the branded Atta market with the launch of Aashirvaad Atta in Jaipur and Chandigarh on 26th May 2002. The product is now available all over India. Aashirvaad aata has further built on its leadership position among the National Branded Players with a market share of 56%. 'Aashirvaad' promises the Indian
housewife the joy of providing her family with the most delightful homemade rotis, made from the finest quality atta. ITC uses the sourcing strength of its eChoupals to buy wheat directly from the farmers to deliver happiness to the Indian consumer Khushiyaan Chun Chunke (Happiness handpicked). Aashirvaad is made from finest quality wheat that ITC has the unique capability to source through its eChoupal network. Premium quality atta, made from 100% MP 'sharbati' wheat is also available as Aashirvaad Select Atta. The wheat for Aashirvaad Superior MP Wheat Atta comes from the plush, fertile soil of Madhya Pradesh and then blended using the traditional 'chakki-grinding' method to give the superior, discerning taste.
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ITC Foods also aims to delight the consumer through superior and innovative packaging. The Aashirvaad package is PET Poly, with the design showcasing the farming process
undertaken in the rural heartland of India in the form of a Madhubani painting. Aashirvaad Select Atta (5 kg pack) was awarded the World Star Award for Excellence in Packaging in the Consumer Pack Category. This is one of the most prestigious awards in the world for Packaging.
The latest offering is Aashirvaad Atta with Multigrains. This new and improved variant is designed to provide nourishment for people of all ages and is an integrated mix of six different grains wheat, soya, channa, oat, maize & psyllium husk which gives a better and healthier option for the consumers. Aashirvaad Atta with Multigrains is an excellent source of vitamins, which is vital in strengthening immunity, and extra protein content improves body strength. The extra fibre makes food easier to digest and low content of saturated fat keeps the heart smiling all through the day and above all, still retaining the same great taste. This product is available in select cities.
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COMPETITORS
SHAKTI BHOG FOODS LTD.
Established in the year 1970, we, "Shakti Bhog Foods Ltd.", are the most reputed name in the field of food products. Our brand- Shakti Bhog is India's fastest selling wheat flour and has made us a popular name in the global market. The distinctiveness of our products and further broadening of product lines has established us as the most acknowledged manufacturer, exporter and supplier of Wheat Flour, Basmati and NonBasmati Rice, Poha, Daliya, Biscuits, Semoline (Suji), etc. Our impeccable quality products, cost effective production process, voluminous experience of the market and prompt delivery has fetched us tremendous customer response in overseas markets like USA, New Zealand, Australia, UAE, Qatar and host of other countries. The work culture of our organization is focused on high performance, innovation, entrepreneurship and empowerment. Our products have been well-appreciated by all our clients, which motivates us to elevate the standards of excellence. We are a leading producer in milled product segment in Indian processed food industry, products like Packaged Atta (Whole Wheat Flour), Besan (Gram Flour), Samoline (Suji), Basmati Rice and Dalia (Porridge) are part of our product line. We produce three kinds of Flour, two kinds of Porridge and different variety of Basmati Rice. Absolute hygienically proven and tested quality checks are undertaken at every level of the production process, in order to make sure that only quality proven batches of products are dispatched in the market.
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Product Aashirvaad atta Aashirvaad atta (multi grain) Samrat atta Shaktibhog atta
5kg 140/205/--145/-
10kg 270/---300/255/-
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To analyze the sales of aashirvaad atta. To study the distribution channel of aashirvaad atta. To study the customer satisfaction of aashirvaad atta.
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Chapter 3 HYPOTHESIS
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HYPOTHESIS
A hypothesis is a tentative statement about the relationship between two or more variables. A hypothesis is a specific, testable prediction about what you expect to happen in your study. For example, a study designed to look at the relationship between sleep deprivation and test performance might have a hypothesis that states, "This study is designed to assess the hypothesis that sleep deprived people will perform worse on a test than individuals who are not sleep deprived."
The sales and distribution of aashirvaad atta is comparatively low than other
brands of atta.
Customers are satisfied with the aashirvaad atta. Samrat atta and shaktibhog atta are giving tough competition to Aashirvaad
atta.
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Biased Behavior Misinterpretation of data Time Constraints Limited sample size The topic of project handled by me was very wide, but demanding one for the time being. Although it was an interesting one but there were some limitations attached to it such as The scope of study was very vast but it was limited due to time constraints. The sample size has to be reduced.
Study will be only for Nagpur area and not for whole India.
Inadequate data disclosure by the companies. In spite of all these limitations, the project was successfully completed on time.
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RESEARCH METHODOLOGY
Data Source:Data is one of the most important and vital aspects of any research studies. Researches conducted in different fields of study can be different in methodology but every research is based on data, which is analyzed and interpreted to get information Types of Data:There are two types of Data 1) Primary DataPrimary Data includes Observations Questionnaire:- A formal list of the questions were answered by across 100 Retailers who are thought to have the desired information and later analyzing the responses is the questionnaire method. It can be used to get some data relative to most problems. Interviews:- Personal interview is the most versatile and flexible kind of technique. Direct face-to-face conversation helps in getting accurate data. Personal interview were done with the people in order to get the required information.
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Research design
SAMPLE SIZE: A sample size of 100 Retailers was taken.
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Retailers
YES NO
Interpretation: 40% retailers says that they do not deal with Aashirvaad atta . 60% retailers says that they deal with Aashirvaad atta .
Findings: At current, samrat atta is leading the market as it is having market experience of more than 30 years. Our product has interred the market about 10 years before though it is giving tough competition. At present 60% of the retailers are dealing with ITC Aashirvaad atta. And retailers are increasing day by day.
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Chart Title
LESS THAN 1 YEAR DURATION, 1-2 YEAR ABOVE 4 YEAR, 2-3 YEAR 40% ABOVE 4 YEAR
DURATION, 2-3 YEAR, 30% DURATION, 1-2 YEAR, 20% DURATION, LESS THAN 1 YEAR, 10%
Interpretation: 40% retailers are selling Aashirvaad atta from more than 4 years. 30% retailers are selling Aashirvaad atta from more than 2-3 years. 20% retailers are selling Aashirvaad atta from more than 1-2 years. 10% retailers are selling Aashirvaad atta from less than 1 year.
Findings: Majority of retailers are dealing with Aashirvaad atta for more than four years and they are increasing year after year.
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AASHIRVAD AATA SHAKTIBHOG AATA PREFRENCE, SMRAT AATA SHAKTIBHOG UNBRANDED AATA AATA, 30%, 30%
Interpretation: 35% customers have preferred samrat atta. 30% customers have preferred shaktibhog atta. 25% customers have preferred Aashirvaad atta. 10% customers have preferred unbranded atta.
Findings: The availability of Aashirvaad atta is not with all the retailers hence the percentage is lesser then samrat atta and shaktibhog atta. The most preferred brand by the customer is samrat atta because it is existence in market from last 25 years and it is readily available to distributor. Quality and availability are major factor for preferences by the customers.
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Chart Title
PREFRENCE BASIS, PACKAGING, 25% PREFRENCE BASIS, PRICE, 10% PREFRENCE BASIS, AVAILABLITY, 5%
Interpretation: 60% customers have preferred Aashirvaad atta as per as quality is concerned. 10% customers have preferred Aashirvaad atta because of its price. Packaging of Aashirvaad atta attracted 25% customers. 5% customers preferred Aashirvaad atta as per its availability.
Findings: 60% of consumers preferredAashirvaad atta because of its quality and 25% and 10% prefer due to its packaging and price.
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Chart Title
Interpretation: 60% retailers recommend Aashirvaad atta because of its quality. 15% retailers recommend Aashirvaad atta because of its margin. 10% retailers recommend Aashirvaad atta because of its availability. 15% retailers recommend Aashirvaad atta because of its promotions and offers.
Findings: Most of the retailers recommend Aashirvaad atta because of its quality. Promotions & offers and margin are other reasons for it. Availability should be increase to all the retailers and promotion and offers to be enhance for attracting customers.
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Chart Title
POINT OF PURCHASE, NO, 40%, 40% POINT OF PURCHASE, YES, 60%, 60%
YES NO
Interpretation: 60% of retailers say that they are encouraged by ITC brand. 40% of retailers say that they are not encouraged by ITC brand.
Findings: The majority of retailers are satisfied with encouragement by ITC. ITC should be more aggressive to the point of purchase
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LEADING BRANDS, SHAKTIBHOG AATA, 40% LEADING BRANDS, SAMRAT AATA, 30% LEADING BRANDS, AASHIRWAD AATA, 20% AASHIRWAD AATA SHAKTIBHOG AATA SAMRAT AATA LEADING BRANDS, UNBRANDED AATA UNBRANDED AATA, 10%
Interpretation: 20% of market share is captured by Aashirvaad atta. 40% of market share is captured by shaktibhog atta. 30% of market share is captured by samrat atta. 10% of market share is captured by Unbranded atta.
Findings:
Samrat atta and shaktibhog atta are giving tough competition to Aashirvaad atta in terms of sales. Price and availability are also the major factors, which are affecting the sales of the product.
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Chart Title
Interpretation: Samrat atta is leading the market. Second position is captured by shaktibhog atta. Aashirvaad atta is ranked 3rd because of its availability. Unbranded atta is capturing the 4th positions.
Findings: As per as the availability factor is concerned Samrat atta and Shaktibhog atta are leading the market. Retailers feel that our product should be easily available and should be easily approached by the customers.
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Chart Title
Interpretation: 40% retailers have recommended ITC to provide new offers and discounts. 35% retailers asked ITC to add some nutrient value to their product. 25% of retailers suggested ITC should come up with small pack.
Findings: ITC should provide interesting offers and discount so as to maximize the sales. It should also add some nutrition value to their product at competitive price. And come up with smaller packing as the customer want lo purchase in lesser quantity.
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10. Retailers satisfaction towards promotional campaign by ITC for Aashirvaad atta.
SATISFACTION Chart Title LEVELS, SATISFIED, 45% SATISFACTION LEVELS, NOT SATISFIED, 30% HIGHLY SATISFIED SATISFIED NOT SATISFIED
Interpretation: 25% retailers are highly satisfied with the brand promotion. 45% retailers are just satisfied the promotional activities by ITC. 30% retailers are not satisfied with the product advertisements.
Findings: ITC is having effective and impressive brand promotion; it should encourage retailers time to time by providing various offers and discounts.
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Interpretation: 54% of retailers are satisfied with sales and distribution policy. 46% of retailers were disappointed with the sales and distribution policy.
Findings: So many retailers are facing problems with the availability of aashirvaad atta, so ITC should make their sales and distribution channel more effective.
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Chart Title
AASHIRVAD AATA SERVICES, SAMRAT AATA, 40% SHAKTIBHOG AATA SAMRAT AATA UNBRANDED AATA
Interpretation: 40% retailers are saying that they are satisfied with the sales and distribution of samrat atta. 30% retailers are saying that they are satisfied with the sales and distribution of shaktibhog atta. 25% retailers are saying that they are satisfied with the sales and distribution of Aashirvaad atta. 5% retailers are satisfied with the services provided by unbranded atta.
Findings: Shaktibhog atta and samrat atta are providing better services to the retailers. Their products are easily available to the market. ITC should have to increase their product availability in the market for increasing the sales.
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ITC should have to make sales and distribution channel much more effective.
ITC should have to do effective promotional activities and provide offers and discounts for the retailers and also for the consumers. This will increase our retailers and consumers.
ITC should add some nutrition values to their product. Which will increase the quality of the product and we can easily differentiate our product from others. This will attract more customers towards our products.
Company should more work on advertising of aashirvaad atta. They should target the house wifes and increase the media advertisements.
We find that the rate of Aashirvaad atta (multi grain) is more than its Competitor ShaktiBhogh and Samrat atta.
The Retailers said that product is strong, but due to availability its sale is less than its competitors.
We also find that the packaging of Aashirvaad atta is better than its competitors.
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Chapter 8 Conclusion
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CONCLUSION
ITC is a much organized brand it is felt that the sales could increase further and ITC can capture better market shares by following major: Making the product easily available to the retailers. As the customer prefer to by in smaller quantity it is suggested that ITC should come up with smaller packets of the products. Aggressive brand promotion targeting house wifes by innovative methods like 1. Cookery show 2. Coupons schemes 3. And increasing point of purchase display material
ITC should also come up with leaflets highlighting nutrient value of the product at the retailers point.
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Chapter 9 BIBLIOGRAPHY
BIBLIOGRAPHY
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ITC ANNEXURES ITC REPORTS MARKETTING MANAGEMENT- P. KOTLER MARKETING RESEARCH-G.C. BERI www.itcportal.com, www.wikipedia.com RESEARCH METHODOLOGY-C.R.KOTHARI
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Chapter 10 ANNEXURES
ANNEXURES
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2. For how long you are going for this brand? > 1year 1 year 2 year 2 year - 4 year 4 year <
3. What do the consumer prefer more? Aashirvaad atta Shaktibhog atta Ginni atta Local / unbranded atta
4. If they prefer Aashirvaad atta, why do they? Quality Price Packaging Availability
5. Do you recommend Aashirvaad atta to customer? If yes why? Margin Quality Availability Promotions and offers
No
7. From the sales prospective, which brand leads the sales? Aashirvaad atta Shaktibhog atta Ginni atta Local / unbranded atta
9. As a retailer what additional features do you recommend for Aashirvaad atta? Nutrient value Packaging in less quantity Offers and discounts
10. Are you satisfied with ITC promotional campaign of Aashirvaad atta? Highly satisfied Satisfied Not satisfied
11. As a retailer are you satisfied with the sales and distribution process of ITC Aashirvaad atta? Yes 53
No ------------
12. Which brands gives you proper sales and distribution service? Aashirvaad atta Shaktibhog atta Ginni atta Local / unbranded atta
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