Project Report Itc Abhishek Lal
Project Report Itc Abhishek Lal
Project Report Itc Abhishek Lal
ON
“DISTRIBUTION OF ITC
IN
CONVENIENCE CHANNEL FOR NTD CATEGORY
Submitted To
L.N Mishra Institute of Economic development & social change
Under the guidance of: Submitted By:
Dr. Chandra Singh Abhishek Lal
Professor Roll: 19076
LNMI MBA(Marketing)
Session: 2019-21
Acknowledgement
No task is a single person effort, same is with this project. Thus I would
like to extend my sincere thanks to all those people who helped me in
accomplishing my project. With deep sense of pleasure and satisfaction
I complete this project on
“DISTRIBUTION OF ITC IN CONVENIENCE CHANNEL FOR
NTD CATEGORY” and take this opportunity to thank Mr.
AMARJEET KUMAR, for believing in my idea of carrying out the
market research which I intended to do.
He played the central role in helping me gather all the relevant data
needed for my research. I would like to thank Mr. Ishu Nirala and
Krishna Puri for their help in making the data collection process
convenient for me.
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INDEX
Sl no. TOPIC PAGE
NUMBER
1. EXECUTIVE SUMMARY 4
2. OBJECTIVE OF THE STUDY 5
3. RESEARCH MEDHEDOLOGY 6
4. INTRODUCTION 7
5. VISION STATEMENT 7
6 MISSION STATEMENT 7
7 POSITIONING STATEMENT 8
8 ITC PPORTFOLIO 8
9 History of ITC 9
10 Distribution system at ITC 17
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EXECUTIVE SUMMARY OF THE PROJECT
This topic has been chosen to study the competition which the
company is facing and also how to curb the competition with
different tools. There are certain perspective on which a sells their
products with schemes and try to keep a check on the
competition. This project has been a great learning experience for
me, at the same time it gave me enough scope to implement my
analytical ability. Full project gives an insight about the strategies
and its various aspects. I have tried to cover the entire topic in a
very systematic way. The best thing about the project is that it
was real time project where collection of data took place, new
outlet addition, product distribution, auditing of MLC’S outlet. The
various theories like learning, perception, attitude, motivation, and
personality are fully studied in the project.
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OBJECTIVE OF THE STUDY
The objective of the summer training is to ensure that I as a
management student develop in real life experience for handling
the specific projects and also to develop all the various
management activities related to the area of my specialization.
This training gives us a substantial corporate exposure and also
serves as a useful tool of interaction with the corporate sector.
The project has been derived from the field of Marketing and is
entitled as“Distribution of ITC in NTD category” in Gandhi
Maidan beat (PTC).
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Research methedology
It includes the response of ITC products(cigarettes) from retail
outlets with respect to its competitor.
Sampling plan
1. Sampling design: -
Sample unit: - Paan shops, tea stalls, cigrattes
shops, general stores, fast food stalls, etc.
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INTRODUCTION
ITC is one of India's foremost multi-business enterprise with
a market capitalization of INR 324,124cr.
ITC is rated among the World's Best Big Companies, Asia's
'Fab 50' and the World's Most Reputable Companies by
Forbes magazine.
'India's Most Admired Company' by Fortune India magazine.
ITC is one of the country's biggest foreign exchange earners
(US $2 billion in the last decade).
Ranks No. 4 among Indian listed in Private Sector
Companies by market cap. (@ April 09)
No. 1 in FMCG Sector
Rated as one of India’s Most Respected Companies (IMRB-
Business- world Survey 2006).
Diversified group of companies with operations in various
industry segments from cigarettes to apparels.
Annual turnover is of the order US$2.4 billion
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products. While ITC is an outstanding market leader in its
traditional business of cigarettes, Hotels, Paperboards,
Packaging and Agri-Exports, it is rapidly gaining market share
even in its nascent business of Packaged Foods & Confectionary,
Branded Apparel, Personal care and Stationary.
Vision statement
7
Positioning Statement
8
ITC PORTFOLIO
HISTORY OF ITC
A Modest Beginning
10
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, 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.
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1979: Paperboards & Specialty Papers - Development
of a Backward Area
12
1990: Paperboards & Specialty Papers - Consolidation
and Expansion
14
2000: Information Technology - Business Friendly
Solutions
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 - Banking Financial Services & Insurance (BFSI),
Consumer Packaged Goods (CPG), Retail, Manufacturing,
Engineering Services, Media & Entertainment, Travel, Hospitality,
Life Sciences and Transportation & Logistics.
16
In 2010, ITC launched its hand rolled cigar, Armenteros, in the
Indian market. Armenteros cigars are available exclusively at
tobacco selling outlets in select hotels, fine dining restaurants and
exclusive clubs.
17
Distribution system at ITC
The process of passing down each passing the product down the
chain to the next organization through Chain intermediaries.
Before it finally reaches the consumer or end-user is known as
the ‘distribution’ or’ channel.’
A number of alternate ‘channels’ of distribution may be available:
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DISTRIBUTION METHOD FOLLOWED:
Outlet Wise Sales.
Each outlet mapped to Infrastructure type , Channel type,
DS Type, DS Routes
Coverage or Throughput issues highlighted
Inefficiencies/gaps identified in Infra at both channel & DS
Level for recommending corrective actions.
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ITC CIGARETTES
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Process followed in this Project
1) Identification:-
Strength
Robust distribution channel of ITC Ltd in Patna.
Diversified Portfolio of Cigarettes.
Good hold of supervisors and Salesmen on outlets they
serve.
90% market share of ITC in Cigarettes segment (numeric
Availability).
Full Support from higher authorities of ITC for this project.
A balance team of Area executive, Trainees, supervisors
and salesmen led by Asst. Manager Cigarettes, Bihar
Jharkhand.
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Weakness
Growing Market of Marlboro. (increasing Demand)
Not keeping Marlboro Leads to loss of sale of other items,
where Cigarettes are secondary goods like Tea Shops,
Cold-drink Shops, General stores.
Future perspective: Supply issues with ITC during pandemic
scenario.
Addiction of a particular Brand leads to customer’s
dissatisfaction.
Disputes with supervisors.
Personal Relations of outlets with Marlboro people.
Opportunities
As a flagship company of Modi Enterprises, Godfray Philips
India takes care of production and distribution of Marlboro in
India. In Patna ITC is the market leader.
10% numeric Availability of Marlboro in Patna i.e. Marlboro
is available at only 10% of total outlets of Patna.
28% weighted Availability of Marlboro in Patna i.e. Marlboro
is available at only 28% of the outlets where KSFT cigarettes
should be.
Smaller portfolio of Marlboro.
Threats
Probability of spreading rumors that ITC is providing money
to outlets who sell Marlboro can provoke others outlets to
keep Marlboro.
Biased information of daily Marlboro sales provide by outlets
can effects the negotiation process.
Keeping and selling Marlboro by outlets even after signing
the agreement.
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2). Planning and implementation:-
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3.Controlling.
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Major brand of ITC cigarettes which is sold by
retailers on daily basis:
1. Gold flake king (Red)
2. Gold flake king (Blue)
3. Gold flake premium
4. Super star
5. Wills Navy cut
6. Classic Rich test
7. Classic regular
8. Classic mild
9. Gold flake indiemint
10. Capstan (Pilot).
11.flake
12. classic low smell
13. classic rich&smooth
1. Charms.
2. Marlboro.
3. Black.
4. More.
5. Total.
6.Dunhill
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Reason for the low sales of cigarettes:-
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Data collection method
QUESTINNAIRE DESIGN:
a) Yes ( )
b) No ( )
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No. of cig being sold daily =
12) Do you keep ESSE? if yes then how many sticks of it?
q) Yes ( )
r) No ( )
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14) Do you keep GODAM GARAM? if yes then how many
sticks of it?
u) Yes ( )
v) No ( )
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In another set of questionnaire, the company wanted to know
about the selling of their own cigarettes in the shops. This
questionnaire is designed to understand the availability and sells
of the ITC cigarettes brand.
a) Yes ( )
b) No ( )
1. ITC display( )
2. Marlboro display ( )
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o DUNHILL
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3) Rate your overall satisfaction level with the quality of
the supervisors attitude and behavior:-
o Strongly satisfied
o Satisfied
o Neither satisfied nor dissatisfied
o Dissatisfied
o Highly dissatisfied
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CONCLUSION
In the above analysis I found that the Marlboro market share was
increasing rapidly with a much greater and faster pace. All the
new and young people were opting for Marlboro. In most of the
cases it was because of the modern name “MARLBORO”. While
some were going for this because of the double filter.
SUGGESTIONS
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BIBLIOGRAPHY
https://en.wikipedia.org/wiki/ITC_(company)
http://www.itcportal.com/itc-address/itd.aspx
http://www.startlocal.in/retail_-
_general/cigarettes_tobacco_products/bihar/Itc_Limited
_2994663.htm
Market Research, Retailers, consumers.
Scribd.com
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