ITC PVT (I) LTD.

Project Title

Report on Market

research on biscuit
Industries .

Proposed By

: Abhishek Mittal
B.Com, PGP+SMU

Marketing

Institute

: Indira School of career

studies
Waked, pune Maharastra

Project Guide
Submitted

By

Project
Mr.

Ramesh

Malav

Abhishek Mittal

ACKNOWLEDGEMENT
I would sincerely like to thank Mr. Ramesh
malav for his immense contribution & support to
execution of my project In ITC Pvt.(I) Ltd.

I would also like to thank

Mr. Suresh (DSO) Nayapura, Kota
&
Mr. Manish (DSO) Nayapura, Kota

My appreciation to the Family of ITC Pvt.(I) Ltd

would be incomplete if I dont thank
Mr. Mahesh makhija (Distributer, KOTA)
& their sales team.

[Type text]

DECLARATION

I Abhishek mittal hereby declare that this project report is done by

me as per my skills and my knowledge during academic year 201012. This project is not published previously or written by any other
person to substantial extend has been accepted for the award of
any other degree or diploma of any other institute except where
due acknowledge has been made in the text.
ABHISHEK
MITTAL
Date:Place:-

INDEX
Sr.No.
1.
2.
3.
4.

Topic
Introduction
History
Executive Summary
Major player of biscuit

5.
6.

company
Product detail of ITC
Route
wise
detail

7.
8.
9.

Tabular Form
Questionnaire
Recommendation
Bibliography

Page No.
5-6
7-10
11
12-13

14-28
in 34-39
40 - 48
49
50

INTRODUCTION
4

[Type text]

About ITC :ITC is one of India's foremost private sector companies with a
market capitalisation of over US $ 33 billion and a turnover of US $
7 billion. ITC is rated among the World's Best Big Companies,
Asia's 'Fab 50' and the World's Most Reputable Companies by
Forbes magazine, among India's Most Respected Companies by
Business World and among India's Most Valuable Companies by
Business Today. ITC ranks among India's `10 Most Valuable
(Company) Brands', in a study conducted by Brand Finance and
published by the Economic Times. ITC also ranks among Asia's 50
best performing companies compiled by Business Week.
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 Agi-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 brandbuilding capabilities, effective supply chain management and
acknowledged service skills in hoteliering. Over time, the strategic
forays into new businesses are expected to garner a significant
share of these emerging high-growth markets in India.
ITC's

Agri-Business

is

one

of

India's

largest

exporters

of

agricultural products. ITC is one of the country's biggest foreign

exchange earners (US $ 3.2 billion in the last decade). The
Company's 'e-Choupal' initiative is enabling Indian agriculture
significantly enhance its competitiveness by empowering Indian
farmers through the power of the Internet. This transformational
strategy, which has already become the subject matter of a case
study at Harvard Business School, is expected to progressively
create for ITC a huge rural distribution infrastructure, significantly
enhancing the Company's marketing reach.
ITC's

wholly

owned

Information

Technology

subsidiary,

ITC

Infotech India Ltd, provides IT services and solutions to leading

global customers. ITC Infotech has carved a niche for itself by
addressing customer challenges through innovative IT solutions.
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 24,000 people at more than 60 locations across
India. The Company continuously endeavors to enhance its wealth
generating capabilities in a globalising environment to consistently
reward more than 4, 05,000 shareholders, fulfill the aspirations of
its stakeholders and meet societal expectations. This over-arching

[Type text]
vision of the company is expressively captured in its corporate
positioning statement: "Enduring Value. For the Nation. For the
Shareholder."
Biscuit industry contribute Rs 8,000 crore to the FMCG industry
and provide a vast opportunity for growth, as the per capita
consumption of biscuits is less than 2.1 kg in our country. India It is
classified under two sectors: organized and unorganized. Apart
from Big 3(Britannia, Parle, ITC) there are around 150 medium to
small biscuit factory in India. The Industry is now facing problem
from increase of raw material price. With Government VAT up to
12.5% has added to their woes. The Federation of Biscuit
Manufacturers of India (FBMI) has confirmed a bright future of
India Biscuits Industry. According to FBMI, a steady growth of 15
percent per annum in the next 10 years will be achieved by the
biscuit industry of India. Besides, the export of biscuits will also
surpass the target and hit the global market successfully.

History:ITC was incorporated on August 24, 1910 under the name Imperial
Tobacco Company of India Limited. As the Company's ownership
progressively

Indianite,

the

name

of

the

Company

was

changed from Imperial Tobacco Company of India Limited to

India Tobacco Company Limited in 1970 and then to ITC.
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 Companys beginnings were humble. A leased office on Radha
Bazaar 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 'ITCWelcomgroup 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

[Type text]
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.

line

of

premium

range

of

notebooks

under

brand Paperkraftwas 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 Indias

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

business

environment

friendly

premium

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

10

[Type text]
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 Indias 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.

11

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

under Essenza

range

Di

Wills provides a comprehensive grooming regimen with distinct

lines

men (Inizio

for

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

September,
Company

of

October
also

Shampoos,
and

launched

Shower

December

Gels

2007

the 'Superia' range

and

Soaps

respectively.
of

Soaps

in
The
and

Shampoos in the mass-market segment at select markets in

October 2007 and Vivel De Wills & Vivelrange of soaps in
February and Vivel range of shampoos in June 2008.

CHAIRMAN

12

[Type text]

Y C Deveshwar

EXECUTIVE DIRECTORS
Nakul Anand

P V Dhobale

K N Grant

NON-EXECUTIVE DIRECTORS
A Baijal

S Banerjee

AV Girija Kumar

S H Khan

S B Mathur

D K Mehrotra

H G Powell

P B Ramanujam

Anthony Ruys

Basudeb Sen

K Vaidyanath

B Vijayaraghavan

ITC Vision
Sustain ITC's position as one of

India's most valuable

corporations
through world class performance, creating growing value
for the Indian economy and the Companys stakeholders

ITC Mission
Sustain ITC's position as one of

India's most valuable

corporations

13

through world class performance, creating growing value

for the Indian economy and the Companys stakeholders
LIST OF THE PLAYERS IN THE INDUSTRY
The major Brands of biscuits are - Britania, Parle Bakeman, Priya
Gold,Elite, Cremica, Dukes, Anupam, Horlicks, Craze, Nezone,
besides various regional/State brands.

COMPETITIVE BRANDS: Britannia, Parle, ITC foods,

Surya Foods others
MAJOR PLAYERS IN THE BISCUIT INDUSTRY
Regional bakery brands:
A few regional players have made a mark in their respective zone.
HARVEST
GOLD CREMICA PRIYA GOLD DUKES COOKIE MAN ANMOL
MONGINIS

BONN

BISK

FARM

ELITE

ANUPAM

MODERN

SABISCO CHAMPION VEERMANI FOREIGN PLAYERS

Foreign players like United Biscuits and McVities have also entered
the fray. However, these players have concentrated themselves in
the super-premium and premium segments

PARLE COMPANY
In 1929 a small company by the name of Parle products emerged in
British dominated India. The intent was to spread joy and cheer to
children and adults alike, all over the country with its sweets and
candies. Parle Products has been India's largest manufacturer of
biscuits and confectionery, for almost 80 years. Makers of the
world's largest selling biscuit, Parle-G, and a host of other very
popular brands, the Parle name symbolizes quality, nutrition and
great taste. With a reach spanning even the remotest villages of

14

[Type text]
India , the company has definitely come a very long way since its
inception. Many of the Parle products - biscuits or confectioneries,
are market leaders in their category and have won acclaim at the
Monde Selection, since 1971.
With a 40% share of the total biscuit market and a 15% share of the
total confectionary market in India,. Major products are Parle - G,
Hide and Seek, Krackjack, Hide & Seek, Milano,Magix, Digestive,
Marie Monaco Parle Marie, Kreams, Milk Shakti, Parle 20-20
Cookies, Nimkin, etc

BRANDS

15

2003,

ITC foraying into the segment, a lot of that changing ed.

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.

16

[Type text]

Some other range of sun feast biscuit

Sun feast Golden Bakery
Sun feast 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.

Sun feast Milky Magic

Packed with goodness of milk these deliciously nutritious
crisp and crunchy biscuits are a favorite among mothers and
kids.

Milky magic has the Magic of 2 - A perfect balance of

energy that aids physical strength and mental ability.

Strawberry &chocolate Cream

17

 The first of its kind cream biscuit with special strawberry

flavor crystals that will keep the creamy flavor linger on
A special delight for all those chocolate lovers

List of product and brand

Cigarettes:

W. D. & H. O. Wills

W.D & H.O.Wills (Australia) Ltd began manufacturing tobacco

products in 1913 at its Raleigh rural but these days
Kensington is regarded as one of the more central Sydney
suburbs, located only 5 kilometres from the city centre. The
site played host to a manufacturing facility for 72 years.
In 1945 an estate of 16 acres was purchased at East
Bentleigh, Melbourne, with a further 22 acres purchased
later and the Virginia Park manufacturing branch was
established

Increasing competition
The 1950s were to be one of the most successful decades in the
companys history and it enjoyed a peak of 83 per cent market
share in 1954. But this was also a period of increased
competition as Phillip Morris and Rothmans entered the
Australian tobacco market.

Tougher times

18

[Type text]
By 1972, increased competition meant that the companys
market share had slipped to 39%. By the time tobacco
advertising was banned on Australian radio and television in
1976, Wills' market share had fallen a further 6%.

New beginnings

In 1985 Wills combined the separate factory operations in

Sydney and in Melbourne into one site at Pagewood, Sydney
which took on the name Virginia Park. In 1989 W.D &
H.O.Wills (Australia) became a subsidiary of the British
American Tobacco Industries group of companies.

The big change

In 1999 the company faced its most historic event to date
when majority shareholder British American Tobacco merged
with global competitor Rothmans International. Rothmans in
Australia and Wills merged to form the wholly-owned
subsidiary British American Tobacco Australia.

To satisfy regulatory requirements at the time, some 16 per cent

market share was divested by way of a sale of trademarks to
Imperial Tobacco Australia. The merger left British American
Tobacco Australia, Phillip Morris and Imperial Tobacco Australia
as the three players in the Australian tobacco market.
British American Tobacco Australia is still the market leader,
with 45.8 per cent market share as at December 2010.
Park factory in Kensington, Sydney. At the time, the 35 acre
site was considered to be quite

Gold Flake Kings,

19

Gold Flake is a widely-sold cigarette brand in India and

Pakistan. It is sold in various varieties, including Gold Flake
Kings (84 mm), Gold Flake Kings Mild (84mm), Gold Flake
Kings Lights (84mm) and Gold Flake. It is a well-positioned
brand in India . This brand is owned, manufactured and
marketed by ITC Limited, the leading cigarette maker in
India.

Other

popular

cigarette

brands

owned

by

ITC

are Wills & Scissors. Gold Flake is ITC's middle level brand in
terms of price. However the Kings, Lights and Mild varieties
are more expensive with pricing about the same as Wills
Classic varieties of cigarettes. The single largest brand in the
country in value terms (approx 14% of the US$150 million
market) is Wills Navy Cut, which was launched in July 1963.

Wills Gold Flake was discontinued in the UK in 1986 but

continues to be sold in the Republic of Ireland. It is regarded
there as one of the finest Virginian cigarettes on the market,
though can be difficult to find.

Gold Flake Premium,

Inflation is coming down but its not coming down if you are
smoker. Cigarette manufacturer, ITC has hiked prices of Gold
Flake

Premium

inMaharashtra,

reports NewsWire18s

correspondent Manuja Pandey.

ITC has hiked Gold Flake Premium price by Rs 1 to Rs 28 per

pack of 10 cigarettes. The company hiked prices a couple of
days

back.

20

[Type text]

It had last hiked price of Gold Flake Premium in September

last year. The brand contributes around 14-15% to the
companys volume sales. By value, it is around 20%.

Navy Cut,
The term 'Navy Cut' refers to how RN sailors [C19th and C20th to
1953] would wind twine around rolls of tobacco leaves allowing
them to mature under compression, and then slice off the end
shredding the tobacco.
John Player & Sons, Ltd of Nottingham put together logos for an
advertizing campaign ca 1891, and trademarked the results in
1893.
This was a combination of two earlier trademarks - the

lifering bearing the words "Player's Navy Cut" dating from 1888
and the bearded sailor - originally an artist's conception for a
campaign registered around 1891 for the "Jack Glory" brand by
William Parkins & Co of Chester.

Foods:

(Kitchens of India; Ashirvaad;

At ITC Aashirvaad, extra care is taken to keep things as

natural as possible. The way Mother Nature intended for
them to be. Thats why youll see that a lot of traditional,
sometimes even cumbersome methods that the world has
long left behind are adopted, so that you can have a taste of
the authentic. In our quest to provide you wholesome

21

goodness, the finest of ingredients are sourced, directly from

the

farmers

through

our

e-choupals.

ITCs

e-choupal

initiative, aims to confer the power of expert knowledge on

even the smallest individual farmer. Thus enhancing his
competitiveness in the global market. A walk through our
range our products might well seem like a journey through
the good old world. A world that found happiness in
harmonising with nature.

Aashirvaad Atta was launched on 27th May 2002 and within a

short span of 7 years has become the number one in branded
packaged atta across the country. Aashirvaad Atta is made
from the choicest grains - heavy on the palm, golden amber in
colour and hard in bite. It is carefully ground using modern
'chakki - grinding' process for the perfect balance of colour,
taste and nutrition which also ensures that Aashirvaad atta
contains 0% Maida and is 100% Sampoorna Atta. The dough
made from Aashirvaad Atta absorbs more water, hence rotis
remain soft longer. The wheat for Aashirvaad Atta is sourced
directly from farmers through ITC's e-choupals.

Select

100%

MP

Sharbati

atta

Aashirvaad Select 100% MP Sharbati atta comes from the

plush, fertile soil of Madhya Pradesh, tended by the right
amounts of sunshine and rainfall. The land here truly sprouts
gold. The gold that we call sharbati. The sharbati wheat is
sourced directly from farmers through ITCs e-choupals and

22

[Type text]
then blended using the traditional chakki-grinding method
to give you that superior, discerning taste that you well
deserve.

Whole Wheat Atta - 0% maida and 100%

Atta:Aashirvaad Whole Wheat Atta has 0% maida and 100%
atta. This means you serve soft, fluffy rotis and a whole lot of
health and happiness.

Aashirvaad Atta with Multigrains : From

the stable of Indias most trusted Atta brand comes a new
and improved variety Aashirvaad Atta with Multigrains. This
all-new 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 to improve body strength. The extra fibre
makes your food easier to digest; low content of saturated fat
keeps your heart smiling all through the day and above all,

23

still

retaining

the

same

great

taste!!

The product is available in select cities

Candyman;
ITC launched the 'Candyman' range of confectioneries in August
2002. Led by the 'Candyman Fruitee Fun' range of assorted fruit
flavours

('Wild

Banana',

'Pineapple

Punch',

'Orange

Josh' and 'Mango Delite'), the 'Candyman' portfolio now includes

deposited

candy

like 'Candyman

products

Butterscotch

Licks' and 'Candyman clairs' (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.
The brand was further strengthened with the launch of 'Candyman
Natkhat Mango' and 'Candyman Maha Mango'. In line with the
strategy

to

provide

consumers,Candyman
2007, Candyman

innovative
Mango

Lacto

flavours

Licks was

Creme

and

formats

launched

Centre in

in

June

to
June

2008

andCandyman Toffichoo Strawberry in early 2009. Candyman

Lacto Creme Center is the only Lacto with a yummy cream filled
center, and Candyman Toffichoo is a luscious fruit flavored soft
and chewy toffee. 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.
www.mycandymanclub.com was launched in July
2004 and now has a loyal, young user-base.
Targeted

at

young

children,

the

website

is

populated with games, quizzes, downloads and

other fun activities.

24

[Type text]

Bingo;
ITC Limited - Foods Division today announced the launch of its new
snacks brand Bingo, which marks the company's foray into the fast
growing branded snacks segment. The launch of Bingo represents
ITC Foods' fifth major line of foods business after the highly
successful

Staples,

Biscuits,

Ready-to-Eat

and

Confectionery

businesses.
Bingo is strategically timed around the World Cup to leverage the
tremendous popularity that such leisure and cocktail snacks will
find among cricket lovers in the country. So cricket lovers can enjoy
their favourite matches while savouring an all-new range of
innovative Bingo snacks during this World Cup.
The category of snacks is characterised by a few organised players
with limited offerings but the unorganised sector continues to rule
the market. However, the organised sector is one of the fastest
growing FMCG categories with an estimated growth rate of 30%
annually.
The organised snacks category is sub-divided into the traditional
segment (Bhujia, chanachur etc.), Western segment (potato chips,
cheese balls etc.) and the newly established Finger snacks
segment, which is an adaptation of traditional offerings to the
western format.
The launch of Bingo is symbolic of ITC Foods' 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

25

segment. The Potato Chips offerings comprise of 4 innovative

variants inspired by the snacking habits of different parts of the
country

as

well

as

Masalas,

Salted

and

Tomato

flavours.

Additionally a south-inspired dairy option has also been introduced

under the potato chips offering.
The offerings under the Finger Snacks segment are equally unique
presentations with innovative finger foods like the pakoda inspired
Live Wires, Khakra inspired Mad Angles and the specially
developed time pass snack in the form of Tedhe Medhe. Each
offering under this segment is available in two variants making it a
total of 6 products in the Finger Snacks portfolio.
Speaking on the foray into this new category, Mr. Ravi Naware,
Divisional Chief Executive, ITC Limited - Foods Division said,
"This is an exciting and fast growing category with a big untapped
market. We have extensively studied the market and our product
development team has created products with variants that will hold
tremendous appeal to the Indian consumer. We are confident that
our retail distribution strength and our insightful understanding of
consumers will help us redefine this category just like we have
done in other categories. An added source of advantage is the
strong farm linkages that ITC has developed for sourcing the
selected grades of potatoes that go into the making of the chips."
Bingo will own the platform of a youthful and innovative snack
offering. The snacks will be available in packs priced at Rs. 5/- and
Rs. 10/- Bingo will soon be available nationally across a majority of
towns and cities.

Mr. Hemant Malik, Head - Marketing, ITC Limited - Foods

Division talking about marketing plans for the product, said
"The new brand will leverage the retail and marketing
expertise of ITC Foods to establish reach across the target

26

[Type text]
markets. The communication strategy encompasses a multimedia campaign for the entire product range including the
use of new media for enhanced visibility. A spate of on-ground
promotions distinctly communicating the product attributes
and

brand

essence

will

further

supplement

Bingo's

communication strategy."

Yippee,

ITC has launched noodles under its Sunfeast brand in

Chennai, Coimbatore and Kerala. Of late, FMCG compnaies like
GlaxoSmithKline and Hindustan Unilever and private labels like
Big

Bazaar's

Tasty

Treat

have

entered

this

segment.

Chitranjan Dar, divisonal chief executive, ITC Foods. said: "We

are looking to tap at synergies. While pasta as a category is
predominant in larger cities, noodles is a more universal
offering and in that sense is a more intense catgeory," explains
Dar. The instant noodles maket in India is pegged at Rs 1,200
crore

and

is

seeing

15-20%

growth

year-on-year.

Clearly, the huge market opportunity is a big pull for players like
ITC. "Noodles is a big growth market that has a limited
competitive

set

at

the

moment."

ITC is planning a national rollout of Sunfeast Yippee! soon. The

company is also planning to introduce more flavours in noodles
within the next 8-10 months," says Dar.

Sunfeast Pasta brands in Ready to Eat, Staples, Biscuits,

Confectionery, Noodles and Snack Foods);

27

Apparel:

(Wills

Lifestyle and John

Players brands);

ITC's Lifestyle Retailing Business Division has established a

nationwide

retailing

presence

through

itsWills

Lifestyle chain of exclusive specialty stores. Wills Lifestyle,

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

wear, Wills

Sport relaxed

wear, Wills

Clublife evening wear, fashion accessories and Essenza Di

Wills - an exclusive range of fine fragrances and bath & body
care products and Fiama Di Wills - a range of premium
shampoos

and

shower

gels. Wills

Lifestyle has

also

introduced Wills Signature designer wear, designed by the

leading designers of the country.

With a distinctive presence across segments at the premium

end, ITC has also established John Playersas a brand that
offers a complete fashion wardrobe to the male youth of
today. With its brands, ITC is committed to build a dominant
presence in the apparel market through a robust portfolio of
offerings.

Personal care:
; In line with ITC's aspiration to be India's premier FMCG company,
recognised for its world-class quality and enduring consumer trust,
ITC forayed into the Personal Care business in July 2005. In the
short period since its entry, ITC has already launched an array of
brands, each of which offers a unique and superior value

28

[Type text]
proposition to discerning consumers. Anchored on extensive
consumer research and product development, ITC's personal care
portfolio brings world-class products with clearly differentiated
benefits to quality-seeking consumers.
ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama
Di

Wills',

received

'Vivel

UltraPro',

encouraging

'Vivel' and'Superia' brands

consumer

response

and

is

has

being

progressively extended nationally.

ITC's

state-of-the-art

requirements

of

manufacturing

hygiene

and

facility

meets

benchmarked

stringent

manufacturing

practices. Contemporary technology and the latest manufacturing

processes have combined to produce distinctly superior products
which rank high on quality and consumer appeal.
Extensive insights gained by ITC through its numerous consumer
engagements have provided the platform for its R&D and Product
Development teams to develop superior, differentiated products
that meet the consumer's stated and innate needs. The product
formulations

use

internationally

recognised

safe

ingredients,

subjected to the highest standards of safety and performance.

Stationery:

(Classmate and Paperkraft brands)

29

ITC made its entry to the education and stationery business with its
Paperkraft brand in the premium segment in 2002; and later
expanded into the popular segment with its Classmate brand in
2003. By 2007, Classmate became the largest Notebook brand in
the country. Together, Classmate and Paperkraft offer a range of
products in the Education & Stationery space to the discerning
consumer, providing unrivalled value in terms of product & price.
Classmate and Paperkraft have become a natural extension of the
consumer. Meticulous understanding of consumer needs helped
creating a relevant and comprehensive portfolio satisfying the
needs of different sets of consumers.
ITC is the manufacturer of India's first Ozone treated environment
friendly

Elemental

Chlorine

Free

(ECF)

pulp,

paper

and

paperboard. It blends its knowledge of image processing, printing

and conversion garnered from Packaging & Printing Business with
its brand building and trade marketing & distribution strengths
resident in its FMCG business to offer superior value products to
consumers.
Paperkraft Business paper and the papers used in Classmate and
Paperkraft notebooks are superior in quality and environmentfriendly. Other offerings available in education and Stationery
range are safe and certified non-toxic.

30

[Type text]

Safety

Matches

and

Agarbattis:

[Ship (through

ownership

of WIMCO); iKno; Mangaldeep; Aim brands

]

As part of ITC's business strategy of creating multiple drivers

of growth in the FMCG sector, the Company commenced
marketing Agarbattis (Incense Sticks) sourced from smallscale and cottage units in 2003. This Business leverages the
core

strengths

marketing,

of

brand

ITC in
building,

nation-wide
supply

distribution

chain

and

management,

manufacture of high quality paperboards and the creation of

innovative packaging solutions to offer Indian consumers
high quality Agarbattis. With its participation in the business,
ITC aims to enhance the competitiveness of the small and
medium scale sectors through its complementary R&D based
product development and strengths in trade marketing and
distribution.

Mangaldeep Agarbattis are

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

Bouquet, Sandalwood, Madhur, Durbar, Anushri and Mogra.
New launches include Fragrance of Temple, Champa and
Tarangini in an attractive pouch format.

31

The pouch format of packaging is increasingly becoming

popular. Mangaldeep has launched three variants Champa,
Tarangini & Malligai in the pouch format catering to various
market needs. The products have received encouraging
response from consumers.

Fragrance of Temple is a flagship sub brand in the

Mangaldeep portfolio with Superior fragrance and high
quality sticks in an industry-first canister pack. The canister
pack also contains a metal agarbatti stand which has been
highly appreciated by consumers.

Mangaldeep

Dhoop,

made

with

Natural Ingredients, is available in

specific markets and is fast creating
a key presence in North India. New
launches include Sandal & Mogra variants as well as 3-in-1
offering in a single pack.

In line with ITC's Triple Bottom Line philosophy of

contributing

to

the

Nation's

economic,

environmental

and

social

capital,

Mangaldeep

agarbattis are manufactured by small scale and

cottage units, providing livelihood opportunities
for more than 12,000 people. Six out of 17
Mangaldeep Agarbatti manufacturing units are
ISO 9000 certified. Mangaldeep ASHA (Assistance
in Social Habilitation through Agarbattis) is an ITC initiative
to improve the quality of raw agarbatti production and
provide better value realization for women rollers. Under the
project, ITC has extended support to NGOs in Bihar, Tripura

32

[Type text]
and Tamil Nadu, to set up agarbatti units, training village
women in rolling agarbattis and employing them in these
units. In the latest initiative, ITC signed a MoU with the
Orissa

Government-run

Orissa

Rural

Development

and

Marketing Society (ORMAS) for marketing raw incense sticks

in the state - a move that is expected to provide employment
opportunities to over 3000 rural women.

Promotion at the launching time

The brand is supported with Television campaigns across
National and Vernacular media beginning August 2003 that
is distinct, highlighting the product attributes, quality and the
new first time in the market offerings from Sunfeast. During
the launch phase, Consumer promotions will be conducted
across retail outlets for every purchase of Sunfeast Marie &
Sunfeast Cream Biscuits 75gms of Glucose Biscuits FREE.
Promotion by advertisement
differentiated

advertisements,

some

which

showed

complete cream world with cream rivers, cream mountains

and cream trees, were targeted at kids watching cartoon
channels.
In April 2005, The company says the brand is now available
in nearly 1.8 million outlets Well Sunfeast launched its major
campaign. It signed on Hindi film actor, Shah Rukh Khan as
its brand ambassador.

33

Pricing

models

as

compare

to

its

competitors..
Essentially, Parle plays a high volume, low margin game. But
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 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.

Market Share of sunfeast

Says Mr

Ravi

Naware chief executive

of itc

foods ,

"Seven per cent in less than three years is something

that we could have only dreamt about."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.

STRATEGIES
Itc campaign to school..
IN a bid to reinforce its brand on kids, ITC Foods Ltd will
soon

cover

more

than

1000 schools across the country as part of its Sunfeast school

34

[Type text]
programme.
Sunfeast learnings corroborate the fact that brands register
better

among

kids

compared

to

adults.

"The objective was to build salience for the brand and

familiarise the kids with the Sunfeast brand world and the
Sunfeast mascot. This mascot has been successful with kids
since

they

all

enjoy

interaction

with

the

mascot.

The Sunfeast school programme focuses on building the

children's creativity through an opportunity to paint and win
prizes. The interest in such programmes are introduced by
leveraging the Sunfeast mascot and by conducting magic
shows.
The Sunfeast mascot is an animated figure of the Sun
suggesting contentment, satisfaction and pleasure one would
derive from the biscuits.

35

IMPORTANT FACTORS:-

36

[Type text]

DISTRIBUTION CHANNEL :-

37

Objectives of the project

The objective of this project is to find out the coverage of Sun feast
Cookies in the IDC markets and its competitors Parle 20-20 .
Along this we also have to find out the ways to increase
the sales of cookies in Kota regions.

METHODOLOGY

Personal site visits

Sufficient amount of time was spent at selected

retailers to find out consumers response towards
itcs brands vis--vis competitors brands.

Also to assist the current salesmen in these routes to

incite sales.

Personal interview

Talks were initiated with the retailers about which of

the itcs brands are performing & which are under
performing & the reasons for them & their views if
any.

38

[Type text]

Need and Significance

The need to conduct the above study arised when a drop in

sales of Bingo & Cookies was reported in Kota.

.Route

wise detail and observations:-

Report on IDC routes of Nayapura (District:-Kota)

Distributor: -

M/s Tulsi Sales Agencies..

Average Sale: - 1, 75,000 (per month)

Way of working of distributor:- He is having an exclusive van for
Perfetti. He carries ready stock with him when he covers the market.
He do four IDC route, from which he covers three routes weekly (cover
these three routes in four days) and one fortnightly.

Route wise Detail:Route 1:- Sakatpura , kunhadi ,

Route in K.M.:- 30 K.M.
Total Sale: - Rs.21, 000 (retail: - Rs.5, 300, Wholesale:- Rs.15,700)
No. of shops cover: - 65

39

Placement of Bingo on: -

20 shops

Placement of Cookies on: - 18 shops

Placement of Candyman on: - 12 shops
Placement of minto on: - 15 shops
Observation:1) Bingo is stronger then cookies on this route.
2) candy man is present but its presence is negligible on this route,
candy man is

selling on this route but it is not fast moving compare to

our other products, demand of minto is more as compared to candy

man on this route.

Route 2:- ladpura , rampura

Route in K.M.:- 30 K.M.
Total Sale: - Rs. 15000 (retail: - Rs.5000, Wholesale: - Rs.10000)
No. of shops cover: - 60
Placement of bingo on: -

20 shops

Placement of cookies on: - 15 shops

40

[Type text]

Placement of candyman on: - 10 shops

Placement of minto on: - 10 shops
Observation:1) Placement of bingo is more then cookies.
2) Chlormint is present but its sale is less compare to our other
product. Minto-fresh is present only on some pan shops because
distributor of ITC pushed them with cigarettes but its demand is very
less in the market, demand of minto-fresh is more compare to
chlormint.

Route 3:- patanpole, chawni.

Route in K.M.:- 30 K.M. (only patanpole is big area on this route)
Total Sale: -

Rs.22, 000 (retail: - Rs.9, 900, Wholesale: - Rs.12,

100)

No. of shops cover: - 70

Placement of Bingo on: -

25 shops

Placement of Cookies on: - 15 shops

Placement of Candyman on: - 18 shops
Placement of Minto-fresh on:- 12 shops

Observation:-

41

1) Like other routes Bingo is present in more in number on this route

also.
2) Presence of Chlormint is negligible on this route.

Route 4:- Gumanpura , bajarng nagar

Route in K.M.:- 30 K.M.
Total Sale: - Rs.21, 000 (retail: - Rs.11, 200, Wholesale: - Rs.9, 800)
No.of shops cover: - 60
Placement of Bingo on: -

20 shops

Placement of Cookies on: - 15 shops

Placement of Candyman on: - 10 shops
Placement of Minto-fresh on: - 15 shops
Observation:1)

Placement of minto-fresh is more compare to candyman on this

route.
2)

Minto-fresh candy is also not sale more on this route but its

placement is more compare to Chlormint.

Route 5:- Staion raod

42

[Type text]

Route in K.M.:- 25 K.M.

Total Sale: - Rs.20, 000 (retail: - Rs.4, 900, Wholesale: - Rs.15, 100)
No.of shops cover: -

45 (hilly area, mostly shopkeepers are semi

wholesalers)

Placement of Bingo on: -

18 shops

Placement of Cookies on: - 12 shops

Placement of Candyman on: - 5 shops
Placement of Minto-fresh on: - 10 shops

Analysis
For NAYAPURA , KOTA
No. of shops cover: - 300
Placement of Bingo on: -

120 shops

Placement of Cookies on: - 70 shops

Placement of Minto- fresh on :- 50 shops

43

MARKET SURVEYArea-kota
1.Sakatpura
Total shop -45
2.Kunadi
Total shop- 39
3. Rampura
Total shop- 35
4. Gumanpura
Total shop 30
5. bajrang nagar
Total shop- 37
6. station road
Total shop- 45
7-Patan pole
Total shop- 30
8. ladpura
Total shop 35
9. chawni
Total shop- 40

Reason behind the Success of 20-20 of Parle

and Sun feast Cookies.
Parles 20-20 does not properly depict the origin brand in
comparison to the cookies which represent sun feast in much
better way.
And Taste of Sun feasts Cookies is much better than Parle
20-20.
Parleys brand name and value in much more helpful in the
sell of 20-20 than Sun feasts Cookies.

44

[Type text]
Parle Company has leadership in FMCG in market, which
gives it an edge over other competing companies performing
in the same area.( following graph justifies the above
contention )

According to the survey conducted by me, Parle in much

more familiar brand with the local consumer in comparison to
Sunfeast .
Parle has large share of consumer form Economic Class, and
in country like India, this economic class is the key factor to
navigate any product in either directions of sale.
According to my survey the Name of 20-20 is on the tongue of

every Indian and this gives an easy connection between the

product and the game.
The Parle has a good delivery mechanism in to order to make its
product for availability even in remote part of existing Market

45

QUESTIONNAIRE
1. Which product have good taste in biscuit
a- Parle 20-20
b- ITC cookies

46

[Type text]

Objective :- To know the taste preference of

different samples .

2. What is more important for the sale of a product?

A- Brand name
B- Product name

47

Objective:- To know about the reasons of effective sales.

3. Which brand has outstanding sales in biscuit

market?
A-Parle
B-ITC

48

[Type text]

C-OTHER
Objective: - To know about better sales of biscuit
company

4. Which brand is familiar for consumer?

A-PARLE
B-ITC

49

Objective: - To know about the consumer awareness of

the brand

5. Which type of category consumes 20-20 Parle the most?

A-low class
B-economic class
50

[Type text]

C-high class

Objective: - To know about the which category is

consume 20-20 Parle .

6.20-20 cricket logos is helpful l in sales of Parle

20-20 biscuit
A-YES
B- NO
51

Objective: - To know about the consumer

mantality

7. Which brand has best market delivery /

availability in market?
A-ITC

52

[Type text]

B-PARLE
Objective: To know about the market approach
of the product.

Recommendations
It is ITC's strategic intent to secure long-term growth by
synergising and blending the diverse pool of competencies residing

53

in its various businesses to exploit emerging opportunities in the

FMCG sector.
The Companys institutional strengths deep understanding of the
Indian consumer, strong trademarks, deep and wide distribution
network, agri-sourcing skills, packaging know-how and cuisine
expertise continue to be effectively leveraged to rapidly grow the
new FMCG businesses.
Over the last few years, ITC has rapidly scaled up presence in its
newer FMCG businesses comprising Branded Packaged Foods,
Lifestyle Retailing, Education and Stationery products, Personal
Care products, Safety Matches and Incense Sticks (Agarbatti) with
Segment Revenues growing at an impressive compound annual
growth rate of 38% during the last 5 years.
The Companys unwavering focus on quality, innovation and
differentiation backed by deep consumer insights, world-class R&D
and an efficient and responsive supply chain will further strengthen
its leadership position in the Indian FMCG industry.

Company must focus on rural areasso that theycan increase

their sales.

Products have to be essentially available in market at all

given points of time.

ITC

must

also

be

aware

of

new

entrants

like

GSK,PepsiCo,UK,Shakti Bhoj in FMCG segment.

Margins for retailers must be increased.

My other observations:-

1).

In order to increase sale in biscuit Market the

company should focus on rural area, and ITC will give

tough competition in next 2 years.

54

[Type text]

2. The ITC has failed to convince the economic class of

people that it has FMCG industry apart from Tobacco
and Hotels

Bibliography
Website:www.itcportal.com/ -

Pvt.

(I)

Ltd

55