ITC Ltd. FMCG Products Opportunity in Convenience Stores

ITC Ltd.
TABLE OF CONTENTS
SL.NO.
PARTICULARS
PAGE NO.
EXECUTIVE SUMMARY
INDUSTRY PROFILE
COMPANY PROFILE
13
DATA ANALYSIS
40
FINDINGS
63
SUGGESTIONS
67
CONCLUSION
69
ANNEXURE
70
BIBLIOGRAPHY
72
KLESs Institute of Management Studies and Research, Hubli
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ITC Ltd.
EXECUTIVE SUMMARY
Title of the study: A study on Opportunity of FMCG products of ITC in convenience

market in Hubli town.
Need for the study: In India convenience market is growing day by day. For a company
like ITC, which is involved in producing FMCG like Confectionaries, Soaps, Biscuits,
Chips etc it is very important to place their products in such market to increase their sales
and have a good reach in the market.
Objectives of the study:
To understand distribution of ITC products in convenience market.
To ascertain movement of ITC products in convenience market.
To know the competitive forces and their strategies.
To identify actions to be initiated to increase sale of ITC products through

convenience market.
Research Methodology:
1. Sample Population
: Convenience outlets (Pan Shops).
2. Sampling Method
: Judgmental Sampling.
3. Sample Size
: 100 outlets
4. Instrument used
: Questionnaire.
5. Method of data collection
: By administering questionnaire
6. Types of data being collected
: Primary data and Secondary data.
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ITC Ltd.
Sources of data:
Information is collected from both primary and secondary sources.
1) Primary data: A structured form of questionnaire is designed and the data is
collected from the sample size of 100.
2) Secondary data: The required secondary data collected from the company
websites, personal interviews with the employees of the company.
Major Findings:
1. Out of 100 convenience outlets during the survey it was found that 95 outlets sell the
FMCG products like biscuits,confectionary,agarbatti,soap and chips. So ITC Company
has an opportunity of placing the products in these 5 outlets before any other competitor
places.
2. Out of 95 outlets who sell FMCG products like biscuits, confectionary, agarbatti, soap
and chips, it is found that all the 95 outlets are selling confectionaries, 69 outlets are
selling Biscuits,76 outlets are selling Agarbatti, 55 outlet are selling Soaps and 69 outlet
are selling Chips.
3. Out of the 69 outlets who sell biscuits it was found that 60 outlets sell Sunfeast biscuit
which shows that there is good market share of Sunfeast biscuits in convenience outlets.
But the other 9 outlets are the category handlers of biscuit, so, ITC has an opportunity of
placing their Sunfeast Biscuit in these 9 outlets.
4. Out of the 95 outlets who sell confectionary it was found that 87 outlets sell
Candyman. This shows that there is a good market reach of Candyman in convenience
outlets. Those 8 outlets which do not sell candyman are category handlers of
confectionary and ITC has an opportunity to place Candyman in these outlets.
5. Out of the 76 outlets who sell Agarbatti it was found that 41 outlets sell Mangaldeep
Agarbatti. ITC has an opportunity of placing Mangaldeep Agarbatti in these 35 outlets
who are the category handlers of agarbatti.
10. Out of the 55 outlets who sell Soaps it was found that 35 outlets sell Vivel Soap. ITC
has an opportunity of placing Vivel Soap in these 20 outlets which are category handlers
of soap.
11.Out of the 69 outlets who sell Chips, 68 outlets sell Bingo Chips which show that the
outlets prefer to place Bingo chips at their outlet more rather than other brands and Bingo
has a good market share in Hubli. ITC has an opportunity to place Bingo in 26 outlets and
make these outlets category handlers of chips before any competitor place their product.
INDUSTRY PROFILE
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ITC Ltd.
The FMCG sector in India is at present, the fourth largest sector with a total
market size in excess of USD 13 billion as of 2012. This sector is expected to grow to a
USD 33 billion industry by 2015.The sector has shown an average annual growth of
about 11% per annum over the last decade. Unlike the developed markets, which are
prominently dominated by few large players, Indias FMCG market is highly fragmented
and a considerable part of the market comprises of unorganized players selling unbranded
and unpackaged products. There are approximately 12-13 million retail stores in India,
out of which 9 million are FMCG kirana stores.
India FMCG sectors significant characteristics can be listed as strong MNC
presence, well established distribution network, intense competition between the
organized and unorganized players and low operational cost. Easy availability of
important raw materials, cheaper labor costs and presence across the entire value chain
gives India a competitive advantage.
Products which have a swift turnover and relatively low cost are known as Fast
Moving Consumer Goods (FMCG). FMCG items are those which generally get replaced
within a year. Examples of FMCG commonly include a wide range of repeatedly
purchased consumer products such as toiletries, soap, cosmetics, oral care products,
shaving products and detergents, as well as other non-durables such as glassware, bulbs,
batteries, paper products, and plastic goods.
Penetration level and per capita consumption in many product categories is very
low compared to world average standards representing the unexploited market potential.
Mushrooming Indian population, particularly the middle class and the rural segments,
presents the huge untapped opportunity to FMCG players. Growth is also likely to come
from consumer 'upgrading' in the matured product categories like processed and
packaged food, mouth wash etc. A distinct feature of the FMCG industry is the presence
of international players through their subsidiaries (HLL, P&G, Nestle), which ensures
innovative product launches in the market from their parent's portfolio.
Our country has a varied agro-climatic condition which enables to offer extended
raw material base suitable for many FMCG sub sections like food processing industries
etc. India is the one of the major producer of livestock, milk, sugarcane, coconut, spices
and cashew and is the second largest producer of rice, wheat and fruits & vegetables.
Similarly, India has an abundant supply of caustic soda and soda ash, the chief raw
materials required in the production of soaps and detergents, which enables the household
section of the industry to excel and grow. The accessibility of these raw materials gives
India the location advantage.
MAJOR SEGMENTS OF THE FMCG INDUSTRY:
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ITC Ltd.
Household Care
The detergents segment is growing at an annual growth rate of 10 to 11 per cent
during the past five years. The local and unorganized players account for a major share of
the total volume of the detergent market. The preference is given to detergents in urban
area compared to bars. Household care segment is featured by intense competition and
high level of penetration. With rapid urbanization, emergence of small pack size and
sachets, the demand for the household care products is booming. In washing powder
segment, HUL is the leader with ~38 per cent of market share. Other major players are
Nirma, Henkel and Proctor & Gamble.
Personal Care
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ITC Ltd.
Personal care segment includes personal wash products, hair care products, oral
care products, cosmetics etc. The Indian skin care and cosmetics market is valued at $274
million and is dominated by HUL, Colgate Palmolive, Gillette India and Godrej. The
coconut oil market accounts for 72 per cent share in the hair oil market. The hair care
market can be segmented into hair oils, shampoos, hair colorants & conditioners, and hair
gels. In the branded coconut hair oil market, Marico (with Parachute) and Dabur are the
leading players.
Sachet makes up to 40 per cent of the total shampoo sale. Again the market is
dominated by HUL with around ~47 per cent market share; P&G occupies second
position with market share of around ~23 per cent. Personal wash can be further
segregated into three segments namely Premium, Economy and Popular. Here also, HUL
is the leader with market share of ~53 per cent; Godrej occupies second position with
market share of ~10 per cent. Swelling disposable incomes of the Indian consumers,
growth in rural demand and upgrading to the premium products are the key drivers for
future demand growth in major FMCG categories. The skin care market is at a primary
stage in India. With the change in life styles, increase in disposable incomes, greater
product choice and availability, people are becoming more alert about personal grooming.
The major players in this segment are Hindustan Unilever with a market share of
~54 per cent, followed by CavinKare with a market share of ~12 per cent and Godrej
with a market share of ~3 per cent. The oral care market can be segmented into toothpaste
- 60 per cent; toothpowder - 23 per cent; toothbrushes - 17 per cent. This segment is
dominated by Colgate-Palmolive with market share of ~49 per cent, while HUL occupies
second position with market share of ~30 per cent. In toothpowders market, Colgate and
Dabur are the major players.
Food and Beverages

This segment comprises of the food processing industry, health beverage industry,
bread and biscuits, chocolates & confectionery, Mineral Water and ice creams. The three
largest consumed categories of packaged foods are packed tea, biscuits and soft drinks.
Indian hot beverage market is a tea dominant market. The major share of tea market is
dominated by unorganized players. Leading branded tea players are HUL and Tata Tea.
Major players in food segment are HUL, ITC, Godrej, Nestle and Amul.
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ITC Ltd.
Risks and Challenges:

Diverse consumer preferences
Increasing competition
Rising logistics, procurement costs
Ability to win rural consumers
Slowdown in rural demand
High Inflation
Removal of import restrictions resulting in replacement of domestic brands
Increasing clutter advent of price wars
Opportunities:
Untapped rural markets - New growth frontier with more than 33% of Indian
consumer base present in rural markets, it will be a key growth driver for domestic
business.
Lifestyle & Premium products Fast evolving lifestyles, rapid urbanization and
increasing disposable incomes there exists an opportunity for high-end products.
Rising income levels i.e. increase in purchasing power of consumers large domestic
market- a population of over 1 billion
Higher consumer goods spending
Indian consumers being highly receptive to new products demonstrates an opportunity
to offer new products targeting specific segments.
Fast growing emerging markets as well as culturally compatible markets offer a
dimension to further growth
Major FMCG Players:
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ITC Ltd.
Serial No.
Company
Hindustan Unilever Limited
Indian Tobacco Company
Nestle
Amul
Dabur
Asian Paints
Cadbury
Brittannia
Procter and Gamble
10
Marico
COMPANY PROFILE
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco
Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazar
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ITC Ltd.
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. The Company's ownership progressively Indianised, and the name of the
Company was changed to I.T.C. Limited in 1974. In recognition of the Company's multibusiness portfolio encompassing a wide range of businesses - Cigarettes & Tobacco,
Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, AgriExports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in
the Company's name were removed effective September 18, 2001. The Company now
stands as 'ITC Limited.
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.
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ITC Ltd.
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 operatonal
in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.
In 2000, ITC launched a line of high quality greeting cards under the brand
name 'Expressions'. In 2002, the product range was enlarged with the introduction of
Gift wrappers, Autograph books and Slam books. In the same year, ITC also launched
'Expressions Matrubhasha', a vernacular range of greeting cards in eight languages and
'Expressions Paperkraft', a range of premium stationery products.
In 2003, the company rolled out 'Classmate', a range of notebooks in the school
stationery segment.
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
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ITC Ltd.
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 outlets 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 2007, the
Company introduced 'Miss Players'- a fashion brand in the popular segment for the
young woman.
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 Aashirvaad atta (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
just seven 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 matches brands like iKno, Mangaldeep, Aim, Aim Mega
and Aim Metro.
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ITC Ltd.
ITC 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 Mangaldeep across 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 o
f shampoos in
June 2008.
In 2010, ITC launched its handrolled cigar, Armenteros, in the Indian market.
Armenteros cigars are available exclusively at tobacco selling outlets in select hotels, fine
dining restaurants and exclusive clubs.
In May 2013, the business expanded its product portfolio with the launch of
Engage one of Indias first range of couple deodorants
ITC is one of India's foremost private sector companies with a market
capitalisation of nearly US $ 19 billion* and a turnover of over US $ 5.1 Billion. ITC is
rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most
Reputable Companies by Forbes magazine, among India's Most Respected Companies by
BusinessWorld 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.
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ITC Ltd.
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
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. The Company's 'e-Choupal'
initiative is enabling Indian agriculture significantly enhance its competitiveness by
empowering Indian farmers through the power of the Internet. This transformational
strategy, which has already become the subject matter of a case study at Harvard
Business School, is expected to progressively create for ITC a huge rural distribution
infrastructure, significantly enhancing the Company's marketing reach.
ITC's wholly owned Information Technology subsidiary, ITC Infotech India
Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT
solutions, including e-enabled services and business process outsourcing.
ITC's production facilities and hotels have won numerous national and
international awards for quality, productivity, safety and environment management
systems. ITC was the first company in India to voluntarily seek a corporate governance
rating.
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ITC Ltd.
ITC employs over 29,000 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 3,64,000 shareholders, fulfill
the aspirations of its stakeholders and meet societal expectations. This over-arching
vision of the company is expressively captured in its corporate positioning statement:
"Enduring Value. For the nation. For the Shareholder.
ITC 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 allround value creation is backed by strong corporate governance policies and systems.
ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai,
which was then rechristened ITC Chola. Since then the ITC-Welcomgroup brand has
become synonymous with Indian hospitality. With over 100 hotels in more than 75
destinations, ITC-Welcomgroup has set new standards of excellence in the hotel
industry in Accommodation, Cuisine, Environment and Guest Safety. ITC's Hotels
business is one of India's finest and fastest growing hospitality chains. ITC Hotels'
commitment to delivering globally benchmarked services, embedded in a culture deeply
rooted in India's rich tradition of hospitality, gives it a unique and distinct identity.
The ITC Vision:
Sustain ITCs position as one of Indias most valuable corporations through world
class performance, creating growing value for the Indian economy and the companys
stakeholders.
ITC's Core Values:

ITC's Core Values are aimed at developing a customer-focused, high performance
organization which creates value for all its stakeholders:
Trusteeship:
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ITC Ltd.
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 long
term sustainable basis.
Customer Focus:
We are always customer focused and will deliver what the customer needs in
terms of value, quality and satisfaction.
Respect for People:
We are result oriented, setting high performance standards for ourselves as
individuals and teams.
We will simultaneously respect and value people and uphold humanness and
human dignity.
We acknowledge that every individual brings different perspectives and
capabilities to the team and that a strong team is founded on a variety of perspectives.
We want individuals to dream, value differences, create and experiment in pursuit
of opportunities and achieve leadership through teamwork.
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.
Corporate Strategy:
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ITC Ltd.
ITC is a board-managed professional company, committed to creating enduring

value for the shareholder and for the nation. It has a rich organisational culture rooted in
its core values of respect for people and belief in empowerment. Its philosophy of allround value creation is backed by strong corporate governance policies and systems.
ITCs corporate strategies are :
Create multiple drivers of growth by developing a portfolio of world class

businesses that best matches organisational capability with opportunities in
domestic and export markets.
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 ITCs various businesses.
Create distributed leadership within the organisation by nurturing talented and

focused top management teams for each of the businesses.
Continuously strengthen and refine Corporate Governance processes and systems

to catalyse the entrepreneurial energies of management by striking the golden
balance between executive freedom and the need for effective control and
accountability.
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ITC Ltd.
Organisation Structure
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Bc
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BOARD OF DIRECTORS
Chairman
Y C Deveshwar
Executive Directors
Nakul Anand
P V Dhobale
K N Grant
Non-Executive Directors
A Baijal
S Banerjee
A V Girija Kumar
S H Khan
S B Mathur
D K Mehrotra
P B Ramanujam
S S H Rehman
Anthony Ruys
Basudeb Sen
Meera Shankar
K Vaidyanath
B Vijayaraghavan
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ITC Ltd.
ITC Business
FMCG( Fast Moving Consumer Goods)
It is ITC's strategic intent to secure long-term growth by synergising and blending the
diverse pool of competencies residing in its various businesses to exploit emerging
opportunities in the FMCG sector.
The Company's 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.
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), at an impressive
pace over the last several years, crossing Rs. 7000 crore mark in 2013.
Cigarettes & Cigars
ITC is the market leader in cigarettes in India. With its wide range of invaluable
brands, ITC has a leadership position in every segment of the market. ITC's highly
popular portfolio of brands includes Insignia, India Kings, Lucky Strike, Classic, Gold
Flake, Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol, Flake, Silk Cut, Duke
& Royal.
The Company has been able to consolidate its leadership position with single minded
focus on continuous value creation for consumers through significant investments in
creating & bringing to market innovative product designs, maintaining consistent &
superior quality, state-of-the-art manufacturing technology, & superior marketing and
distribution. With consumers & consumer insights driving strategy, ITC has been able to
fortify market standing in the long-term, by developing & delivering contemporary offers
relevant to the changing attitudes & aspirations of the constantly evolving consumer.
ITC's pursuit of international competitiveness is reflected in its initiatives in overseas
markets. In the extremely competitive US market, ITC offers high-quality, value-priced
cigarettes and Roll-your-own solutions. In West Asia, ITC has become a key player in the
GCC markets through its export operations.
ITC's cigarettes are manufactured in state-of-the-art factories at Bengaluru, Munger,
Saharanpur, Kolkata and Pune, with cutting-edge technology & excellent work practices
benchmarked to the best globally. An efficient supply-chain & distribution network
reaches India's popular brands across the length & breadth of the country.
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ITC Ltd.
D. & H. O. Wills,
Gold Flake Kings,
Gold Flake Premium,
Navy Cut,
Insignia,
India Kings,
Classic - Verve, Menthol, Menthol Rush, Regular,Citric Twist,
Mild & Ultra Mild,
555,
Benson & Hedges,
Silk Cut,
Scissors,
Capstan,
Berkeley,
Bristol,
Lucky Strike,
Players,
Flake.
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ITC Ltd.
Foods:
ITC's Branded Packaged Foods business is one of the fastest growing foods
businesses in India, driven by the market standing and consumer franchise of its seven
popular brands - Aashirvaad, Sunfeast, Bingo!, Kitchens of India, mint-o, Candyman and
Yippee! The Foods business is today represented in 4 categories in the market - Staples,
Snack Foods, Ready To Eat Foods and Confectionery.
ITC's uncompromising commitment to the health and safety of its consumers ensures
adherence to the highest levels of quality, safety and hygiene standards in manufacturing
processes and in the supply chain. All ITC-owned manufacturing units are Hazard
Analysis and Critical Control Point (HACCP) certified. The quality performance of all
manufacturing units is monitored continuously online. Going beyond process control,
ITC ensures that quality standards are scrupulously adhered to while choosing ingredients
that go into the preparation of its food products.
ITC's Foods brands delight millions of households with a wide range of
differentiated, value-added products developed by leveraging ITC's in-house R&D
capabilities, relevant consumer insights, a deep understanding of the Indian palate gained
from its Hotels business, its agri-sourcing & packaging strengths, exciting, innovative
communication and an unmatched distribution network.
The business continues to invest in every aspect of manufacturing, distribution and
marketing to ensure that it can leverage emerging opportunities and fulfill its aspiration of
being the most trusted provider of Branded Packaged Foods in the country. ITC's Foods
business also exports its products to the key geographies of North America, Africa,
Middle East and Australia.
The Foods business is today represented in 4 categories in the market. These are:
Ready To Eat Foods
Staples
Confectionery
Snack Foods
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ITC Ltd.
In order to assure consumers of the highest standards of food safety and hygiene,
ITC is engaged in assisting outsourced manufacturers in implementing world-class
hygiene standards through HACCP certification.
The unwavering commitment to internationally benchmarked quality standards

enabled ITC to rapidly gain market standing in all its 6 brands:
Kitchens of India
Aashirvaad
Sunfeast
mint-o
Candyman
Bingo!
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ITC Ltd.
Lifestyle Retailing
ITC's Lifestyle Retailing Business Division has established a nationwide retailing
presence through Wills Lifestyle & John Players.
Synonymous with elegance and style that is effortless and chic, Wills Lifestyle
presents a premium fashion wardrobe for men and women. Offering a tempting choice of
Wills Classic formal wear, Wills Sport relaxed wear, Wills Clublife evening wear and
Wills Signature designer wear, Wills Lifestyle offers a truly delightful shopping
experience for the discerning customer.
John Players embodies the spirit of the modern youth that is playful, fashionable
and cool. John Players presents a complete wardrobe of meticulously crafted smart
formals, trendy casuals, dazzling party wear, edgy denims & accessories incorporating
the most contemporary trends in an exciting mix of colours, styling and fits.
WILLS LIFESTYLE RETAILING:
ITCs Lifestyle Retailing Business Division has established a nationwide retailing
presence through its Wills 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 Club life 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.
Distinctive presence across segments at the premium end, ITC has also
established John Players as a brand that offers a complete fashion wardrobe to the male
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ITC Ltd.
youth of today. The recent launch of Miss Players with its range of trendy fashion wear
for young women has been a successful addition to the youthful offering. With its brands,
ITC is committed to build a dominant presence in the apparel market through a robust
portfolio of offerings.
Wills Lifestyle has been established as a chain of exclusive specialty stores
providing the Indian consumer a truly 'International Shopping Experience' through worldclass ambience, customer facilitation and clearly differentiated product presentation. Our
stores have established themselves as preferred shopping destinations in the prime
shopping districts across the country.
At Wills Lifestyle, customers can browse at leisure, and shop in a relaxed and
pleasing atmosphere. The use of space is refreshing, which is reflected even in the
spacious changing rooms. Every store offers an international retailing ambience with the
extensive use of glass, steel and granite, reflecting the most contemporary trends in store
design, thereby creating a splendid backdrop for the premium offerings.
Wills Lifestyle was named Super brand 2006 by the Super brands Council of
India recently. Wills Lifestyle has been twice declared 'The Most Admired Exclusive
Brand Retail Chain of the Year' at the Images Fashion Awards in 2001 & 2003.
Wills Lifestyle is the title partner of the countrys most premier fashion event Wills Lifestyle India Fashion Week. Taking the celebration of the event to its stores, Wills
Lifestyle has partnered with several leading designers including Rohit Bal, Anamika
Khanna, Ashish Soni & Rohit Gandhi - Rahul Khanna whose new edition of Designer
wear is now available at Wills Lifestyle stores.
Wills Sport, fashionable relaxed wear for men and women has, over thirteen
seasons, become the vibrant face of contemporary fashion. At the Images Fashion Awards
2001, Wills Sport was declared The Most Admired Brand Launch of the Year'.
Following this, Wills Sport was declared 'The Most Admired Women's wear Brand of the
Year', at Images Fashion Awards 2002. Wills Sport presents a collection designed as the
perfect medley of interesting patterns and premium fabrics. Fine knitted sweaters and
trendy mock necks create magic in balmy winter afternoons. The collection also features
rich hues of corduroys and premium Italian jackets.
Wills Classic work wear was launched in November 2002, providing the premium
consumer a distinct product offering and a unique brand positioning. Featuring luxurious
fabrics crafted to perfection with the most contemporary styling, Wills Classic work wear
is positioned as the brand for new age
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ITC Ltd.
JOHN PLAYERS:
ITC forayed into the youth fashion segment with the launch of John Players in
December 2002 and John Players is committed to be the No. 1 fashion brand for the
youth. This foray leverages ITC's proven competencies in understanding consumer
insights, brand building and design capabilities.
John Players offers a complete and vibrant wardrobe of Casual wear, Party wear,
Work wear, Denims, Outer wear and Suits & Jackets, incorporating the most
contemporary trends, an exciting mix of colors, playful styling, trendy textures and
comfortable fits.
The brand is available across the country through a nation-wide network of over
350 exclusive stores and 1400 multi-brand outlets.
With Celebration Gift Certificates, John Players presents a new way of festive
gifting. Having built a powerful brand portfolio that is making waves across the country,
ITC's Lifestyle Retailing is poised to grow and build a dominant presence in the country's
fashion industry.
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ITC Ltd.
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 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',
'Vivel', "Engage" and 'Superia' brands has received encouraging consumer response and
is being progressively extended nationally.
ITC's state-of-the-art manufacturing facility meets stringent requirements of
hygiene and benchmarked 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
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ITC Ltd.
product formulations use internationally recognised safe ingredients, subjected to the

highest standards of safety and performance.
Education and Stationery:

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.
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ITC Ltd.
Paperkraft Business paper and the papers used in Classmate and Paperkraft
notebooks are superior in quality and environment-friendly. Other offerings available in
education and Stationery range are safe and certified non-toxic.
Agarbattis:
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 small-scale and cottage units in 2003.
This Business leverages the core strengths of ITC in nation-wide distribution and
marketing, brand building, supply chain 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-scale and cottage units through its complementary R&D
based product development and strengths in trade marketing and distribution. The
Business continues to work on various exciting new offerings to the consumers and is
planning to launch them in the near future.
In line with ITC's Triple Bottom Line philosophy of every business 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 14,000 people. Mangaldeep Agarbatti is manufactured at various centres & 5
of the 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 livelihood for women rollers.
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ITC Ltd.
ITC has also extended support to NGOs in states and like Bihar, Tripura, Tamil
Nadu, who are setting up agarbatti units, training village women in rolling agarbattis and
employing them in these units. ITC has signed a MoU with ORMAS (Orissa Rural
Development & Marketing Society), an autonomous body under the Pachayat Raj in
Odisha. This initiative provides technical training to rural women & provides
employment opportunities to over 4000 rural women.
Safety Matches:
As part of its strategic initiative to create multiple drivers of growth in the FMCG
sector, ITC commenced marketing safety matches sourced from the small-scale sector.
The Safety Matches business leverages the core strengths of ITC in marketing and
distribution, brand building, supply chain management and paperboard & packaging to
offer Indian consumers high quality safety matches.
ITC's range of Safety Matches includes popular brands like Aim & i Kno. With
differentiated product features and innovative value additions, these brands effectively
address the needs of different consumer segments.
ITC also exports safety matches to various markets. The acquisition of Wimco
Ltd., a subsidiary of ITC has consolidated the market standing of the Company's Matches
business through synergy benefits derived through combined portfolio of offerings,
improved servicing of proximal markets and freight optimization.
Through its participation, ITC aims to enhance the competitiveness of the small
and medium scale sectors through its complementary R&D based product development
and marketing strengths, especially the width and depth of the Company's trade
marketing and distribution.
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ITC Ltd.
HOTELS
Launched in 1975, ITC Hotels, India's premier chain of luxury hotels, has become
synonymous with Indian hospitality. ITC Hotels pioneered the concept of 'Responsible
Luxury' in the hospitality industry, drawing on the strengths of the ITC groups exemplary
sustainability practices. Responsible Luxury personifies an ethos that integrates worldclass green practices with contemporary design elements to deliver the best of luxury in
the greenest possible manner.
A leader in the premium hospitality segment, ITC Hotels have had the privilege of
hosting world leaders, Heads of State and discerning guests from across the world and
within.
ITC-Welcomgroup pioneered the holistic concept of 'branded accommodation' in
the hospitality industry. It was the first to launch the idea of a 'Hotel within a Hotel' by
segmenting, customizing and branding hotel services like 'ITC One', 'Towers' and the
'Executive Club'. Each of these caters to specialized needs of the global business traveller
with unmatched quality and a range of custom-made services.
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ITC Ltd.
ITC-Welcomgroup was the first to introduce branded cuisine. Its restaurants

Bukhara, Dakshin and DumPukht are today powerful cuisine brands. ITC-Welcomgroup
also showcases international cuisine in its specialty restaurants West View and Pan Asian.
ITC has strategically customized its hotels and appropriately categorized them to
fulfill the service and budgetary needs of travelers. ITC-Welcomgroup has an exclusive
tie-up with global partner Starwood for its top of the line premium brand, the 'Luxury
Collection'. ITC Hotels was also instrumental in bringing the 'Sheraton' brand to India,
with which it enjoyed a three-decade exclusive partnership.
ITC-Welcomgroup's properties are classified under four distinct brands:
In 2007, ITC-Welcomgroup entered a new phase in its collaboration with
Starwood Hotels & Resorts. ITC-Welcomgroup now has an exclusive tie-up with
Starwood in bringing its premium brand, the 'Luxury Collection', to India. These are
super deluxe sand premium hotels located at strategic business and leisure locations. The
seven hotels which are part of this collection are: ITC Maurya in Delhi, ITC Maratha in
Mumbai, ITC Sonar in Kolkata, ITC Grand Central in Mumbai, ITC Windsor in
Banglore, ITC Kakatiya in Hyderabad and ITC Mughal in Agra.
WelcomHotels offer five-star hospitality for the discerning business and leisure
traveller. Currently there are three hotels under this brand namely, WelcomHotel Rama
International Aurangabad, WelcomHotel Vadodara and WelcomHotel Grand Bay
Vishakhapatnam. Four other ITC-Welcomgroup Sheraton Hotels Sheraton Rajputana
Hotel Jaipur, Sheraton Chola Hotel Chennai and Sheraton New Delhi offer warm,
comforting services to the global traveller and a chance to connect.
Fortune Hotels offer full service properties all over India, including smaller towns
and cities, ideal for the budget traveller. Fortune Hotels have a strong presence in
Ahmedabad, Thiruvananthapuram, Calicut, Darjeeling, Jamshedpur, Vapi, Hyderabad,
Gurgaon, Indore, Ootacamund, Madurai, Jodhpur, Vijaywada, Chennai, Visakhapatnam,
Mahabalipuram, Kolkata, Bengaluru, Navi Mumbai, Tirupati and Port Blair, while
several more hotels are expected to be commissioned soon in other key locations in India.
WelcomHeritage brings together a chain of palaces, forts, havelis and resorts that
offer a unique experience. WelcomHeritage endeavours to preserve ancient royal homes
and the historical Indian grandeur and opulence for the future Indian generations.
WelcomHeritage provides a fine range of hotel services inside these architectural legacies
present in Rajasthan, Madhya Pradesh, Uttarakhand, Himachal Pradesh, Jammu &
Kashmir, West Bengal, Karnataka, Tamil Nadu, Punjab, Haryana, Assam, Sikkim,
Meghalaya, Arunachal Pradesh, Uttar Pradesh, Maharastra, Kerala, Andhra Pradesh.
ITC Green Centre:
The ITC Green Centre in Gurgaon, the headquarters of ITC's Hotels Business is
the physical expression of this commitment to sustainability - Ecological, Social and
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ITC Ltd.
Economic. This building is one of the world's largest green buildings with space of over
170,000 square feet and the first non-commercial complex in the country to be awarded
the United States Green Building Council-Leadership in Energy and Environmental
Design's (USGBC-LEED) platinum rating - the highest in the order.
At ITC Green Centre, energy consumption has been reduced significantly through
design integration. The building has been designed to maximize the effect of natural light
during daytime, largely eliminating the need for artificial ones. At the same time, the
window glass, while allowing light inside, does not allow heat. This not only keeps the
office cool from inside during the day, but also decreases the load on air-conditioners.
Again, there is minimum exterior lighting to limit night sky pollution. The water
consumption has dropped by 40 per cent and, with a water re-cycling plant, the building
is now a zero water discharge building.
Paperboards & Specialty Papers

ITC's Paperboards and Specialty Papers Division is India's largest, technologically
advanced and most eco-friendly, paper and paperboards business. The business caters to a
wide spectrum of packaging, graphic, communication, writing, printing and specialty
paper requirements through its four world-class manufacturing units, 7 sales offices and a
network of more than 50 dealers in India, along with an international trade network of 18
distributors / agents and 4 finishing operations close to the market for providing faster
service to the customers.
Having pioneered many specialty applications, ITC's Paperboards and Specialty
Papers business enjoys market leadership in the value-added paperboards segment, and
also has a significant share of the Indian fine papers market. It is the largest exporter of
coated boards from India.
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ITC Ltd.
The product range includes:

Packaging
Specialty
Papers
Graphic
ITC takes great pride in servicing a large cross-section of industry requirements from cigarette tissues to FMCG cartons, from electrical insulation papers to PLA Coated
Boards, from decorative laminate base to writing and printing papers and much more.
ITC straddles the entire spectrum of paperboards - from 100% virgin, food-grade boards
which are from renewable and sustainable resources to 100 % recycled boards
Some of ITC's prominent paperboard brands are:
Folding Box Boards: Cyber XLPac, Cyber Cypak, Cyber Propac, Cyber Premium,
Pearl XL Pac
Solid Bleached Sulphate Boards: Safire Graphik, Art Maestro, Carte Persona,
Carte Lumina, Safire XL Pac, Digiart
Poly coated boards: Indobev, Indobarr
PLA Coated boards: Omegabev, Omegabarr, Omegawrap
Recycled boards: Eco Blanca, Eco Natura
Fine Papers: AlfaZap, Alfa Plus, Hi Brite, Paperkraft , Alfazine, Perma White
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ITC Ltd.
Agri Business
ITC's pre-eminent position as one of India's leading corporate in the agricultural
sector is based on strong and enduring farmer partnerships, that has revolutionized and
transformed the rural agricultural sector. A unique rural digital infrastructure network,
coupled with deep understanding of agricultural practices and intensive research, has
built a competitive and efficient supply chain that creates and delivers immense value
across the agricultural value chain. One of the largest exporters of agri products from the
country, ITC sources the finest of Indian Feed Ingredients, Food Grains, Edible Nuts,
Marine Products, Processed Fruits, Coffee & Spices.
ITC's Agri Business Division is the country's second largest exporter of agriproducts with exports of over Rs. 1000 Crores (Rs. 10 billion). Its domestic sales of agri-
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ITC Ltd.
products are in excess of Rs. 1500 Crores (Rs. 15 billion). It currently focuses on exports
of:
Feed Ingredients - Soya meal
Food Grains - Rice (Basmati & Non Basmati), Wheat, Pulses
Edible Nuts - Sesame Seeds, HPS Groundnuts, Castor oil
Marine Products - Shrimps and Prawn
Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic Fruit
Products, Fresh Fruits
Coffee & Spices - Coffee, Black Pepper, Chilly, Turmeric, Ginger, Celery and other Seed
Spices
Farmer empowerment through e-Choupals

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
empowerment plan for the farmer centers around providing Internet kiosks in villages.
Farmers use this technology infrastructure to access on-line information from ITC's
farmer-friendly website http://www.echoupal.com/.
Data accessed by the farmers relate to the weather, crop conditions, best practices
in farming, ruling international prices and a host of other relevant information. e-Choupal
today is the world's largest rural digital infrastructure. The unique e-Choupal model
creates a significant two-way multi-dimensional channel which can efficiently carry
products and services into and out of rural India, while recovering the associated costs
through agri-sourcing led efficiencies. This initiative now comprises about 6500
installations covering nearly 40,000 villages and serving over 4 million farmers.
Currently, the 'e-Choupal' website provides information to farmers across the 10 States of
Madhya Pradesh, Haryana, Uttarakhand, Uttar Pradesh, Rajasthan, Karnataka,
Maharashtra, Andhra Pradesh, Kerala and Tamil Nadu. Over the next 5 years it is ITC's
Vision to create a network of 20,000 e-Choupals, thereby extending coverage to 100,000
villages representing one sixth of rural India.
Supporting the e-Choupal network are ITC's procurement teams, handling agents
and contemporary warehousing facilities across India, enabling its Agri Business to
source identity-preserved merchandise even at short notice. ITC's processors are
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ITC Ltd.
handpicked, reliable high quality outfits who ensure hygienic processing and modern
packaging. Strict quality control is exercised at each stage to preserve the natural flavour,
taste and aroma of the various agri products.
Choupal Saagar
Following the success of the e-Choupal, the Company launched Choupal Saagar,
a physical infrastructure hub that comprises collection and storage facilities and a unique
rural hypermarket that offers multiple services under one roof. This landmark
infrastructure, which has set new benchmarks for rural consumers also incorporates
farmer facilitation centres with services such as sourcing, training, soil testing, health
clinic, cafeteria, banking, investment services, fuel station etc. 24 'Choupal Saagars' have
commenced operations in the states of Madhya Pradesh, Maharashtra and Uttar Pradesh.
ITC is engaged in scaling up the rural retailing initiative to establish a chain of 100
Choupal Saagars in the near
future.
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ITC Ltd.
Information Technology:
Formed in 2000, ITC Infotech has today carved a niche for itself in the arena of
global IT services and solutions. The company has established technology Centers of
Excellence (CoE) to deepen capabilities and incubate cutting-edge technical
competencies. A robust outsourcing model, comprehensive suite of differentiated
solutions & services and focus on excellence in execution has provided the company a
leadership position in chosen domains.
ITC Infotech's customer centric go-to-market approach is organized by industry
verticals. The company services industries including, Banking Financial Services &
Insurance (BFSI), Consumer Packaged Goods (CPG), Retail, Manufacturing,
Engineering Services, Media & Entertainment, Travel, Hospitality, Life Sciences and
Transportation & Logistics.
The company enjoys the rare advantage of having a practitioner's expertise in
some of these industry verticals, which has in part been bequeathed by parent ITC
Limited, which runs market leading businesses in these verticals. While an enterprise
range of technology capabilities and world class quality processes form the foundation of
ITC Infotech's cutting-edge IT service strength ensures that IT services delivery always
places business needs ahead of technology.
ITC Infotech provides IT solutions by addressing customer pain points through
innovative solutions, optimizing their IT landscape and maximizing returns from IT
investments. The company focuses on developing deep and differentiated capabilities to
enhance expertise in specific industry domains, business solutions and technologies. This
steadfast focus on delivering enduring value to customers has formed the bedrock of the
ITC Infotech's growth strategy. The company has been successful in attaining
differentiation in niches and continues to gain competitive advantage and strengthen
market standing. ITC Infotech's leadership capabilities also accrue from business critical
engagements with leading organisations across five continents, and a service delivery
footprint spanning over 140 countries.
ITC Infotech conforms to the highest standards in international process quality,
with ISO 27001, ISO 9001, CMMi Level 3 and BS 7799 accreditations. These reflect the
company's ongoing enterprise-wide focus to ensure that every engagement, program and
project delivers international quality consistently.
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ITC Ltd.
DATA ANALYSIS
Title of the study: A study on Opportunity of FMCG products of ITC in convenience
market in Hubli town.
Need for the study: In India convenience market is growing day by day. For a company
like ITC, which is involved in producing FMCG like Confectionaries, Soaps, Biscuits,
Chips etc it is very important to place their products in such market to increase their sales
and have a good reach in the market.
Objectives of the study:
To understand distribution of ITC products in convenience market.
To ascertain movement of ITC products in convenience market.
To know the competitive forces and their strategies.
To identify actions to be initiated to increase sale of ITC products through

convenience market.
Research Methodology:
7. Sample Population
: Convenience outlets (Pan Shops).
8. Sampling Method
: Judgmental Sampling.
9. Sample Size
: 100 outlets
10. Instrument used
: Questionnaire.
11. Method of data collection
: By administering questionnaire
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ITC Ltd.
12. Types of data being collected

: Primary data and Secondary data.
Secondary data will be collected from company website and other reliable
sources.
Q1Do you sell FMCG products?
Valid
yes
no
Total
Frequency
95
5
100
Percent
95.0
5.0
100.0
Valid
Percent
95.0
5.0
100.0
Cumulative
Percent
95.0
100.0

120
100
95
80
60
Frequency
40
20
0
yes
no
Interpretation:
Out of 100 convenience outlets during the survey it was found that 95 outlets sell
the FMCG products and 5 outlets do not sell the FMCG products.
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ITC Ltd.
Biscuits
Confectionary
Agarbatti
Soap
Chips
69
95
76
55
68
Q2Which of the FMCG products do you sell at your shop?
100
90
80
70
60
50
40
30
20
95
69
76
55
69
10
0
Interpretation:
Out of 95 outlets who sell FMCG products like Biscuits, Confectionary, Agarbatti,
Soap and Chips, it is found that all the 95 outlets are selling confectionaries, 69 outlets
are selling Biscuits, 76 outlets are selling Agarbatti, 55 outlet are selling Soaps and 69
outlet are selling Chips.
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ITC Ltd.
Q3 Which brands FMCG products do you sell?

Sunfeast Biscuits
Count
Biscuit
no
yes
Total
Sunfeast Biscuits
no
yes
26
9
60
35
60
Total
26
69
95
Interpretation:
Out of the 69 outlets who sell biscuits it was found that 60 outlets sell Sunfeast biscuits
and only 9 outlets dont sell the Sunfeast biscuit which shows that there is good market
share of Sunfeast biscuits in convenience outlets.
Parle Biscuits
Count
Biscuit
no
yes
Total
Parle Biscuits
no
yes
26
11
58
37
58
Total
26
69
95
Interpretation:
Out of the 69 outlets who sell biscuits it was found that 58 outlets sell Parle biscuits and
11outlets do not sell Parle biscuits. It shows that there is a high competition between
Sunfeast and Parle products.
Britannia Biscuits
Count
Biscuit
Total
no
yes
Britannia Biscuits
no
yes
26
30
39
56
39
Total
26
69
95
Interpretation:
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ITC Ltd.
Out of the 69 outlets who sell biscuits it was found that 39 outlets sell Britannia biscuits
and 30 outlets do not sell Britannia biscuits which shows that some part of market share
has been taken by Sunfeast products and market share of Britannia has come down at
present.
Other Biscuits
Count
Biscuit
Other Biscuits
no
yes
26
60
9
86
9
no
yes
Total
Total
26
69
95
Interpretation:
Out of the 69 outlets who sell biscuits, 9 outlets sell Other brand biscuits and 60 outlets
do not sell other brand biscuits like Oreo, Dukes etc.
Confectionary CANDYMAN
Count
Confectionary
Total
yes
Confectionary
CANDYMAN
no
yes
8
87
8
87
Total
95
95
Interpretation:
Out of the 95 outlets who sell confectionary it was found that 87 outlets sell Candyman
and only 8 outlets do not sell. This shows that there is a good market reach of Candyman
in convenience outlets.
Confectionary ALPENLIEBE
Count
Confectionary
Total
yes
Confectionary
ALPENLIEBE
no
yes
56
39
56
39
Total
95
95
Interpretation:
Out of the 95 outlets who sell confectionary it was found that 39 outlets sell Alpenliebe
and 56 outlets do not sell.
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ITC Ltd.
Confectionary PARLE
Count
Confectionary
Total
yes
Confectionary PARLE
no
yes
64
31
64
31
Total
95
95
Interpretation:
Out of the 95 outlets who sell confectionary it was found that 31 outlets sell Parle
confectionaries and 64 outlets do not sell.
Confectionary CADBURY
Count
Confectionary
Total
yes
Confectionary
CADBURY
no
yes
50
45
50
45
Total
95
95
Interpretation:
Out of the 95 outlets who sell confectionary it was found that 45 outlets sell Cadbury and
50 outlets do not sell.
Confectionary OTHER
Count
Confectionary
Total
yes
Confectionary OTHER
no
yes
46
49
46
49
Total
95
95
Interpretation:
Out of the 95 outlets who sell confectionary it was found that 49 outlets sell Other local
confectionary and 46 outlets do not sell.
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ITC Ltd.
Mangaldeep Agarbatti
Count
Agarbatti
no
yes
Total
Mangaldeep
no
yes
19
35
41
54
41
Total
19
76
95
Interpretation:
Out of the 76 outlets who sell Agarbatti it was found that 41 outlets sell Mangaldeep
Agarbatti and 35 outlets do not sell which is a good figure as compared to the other big
competitors.
Cycle Agarbatti
Count
Cycle
no
Agarbatti
no
yes
yes
19
54
73
Total
Total
19
76
95
22
22
Interpretation:
Out of the 76 outlets who sell Agarbatti it was found that 22 outlets sell Cycle Agarbatti
Moksh Agarbatti
Count
Moksh
no
Agarbatti
Total
no
yes
yes
19
59
78
Total
17
17
19
76
95
Interpretation:
Out of the 76 outlets who sell Agarbatti it was found that 17 outlets sell Moksh Agarbatti
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ITC Ltd.
Ullas Agarbatti
Count
Ullas
no
Agarbatti
no
yes
yes
19
43
62
Total
Total
19
76
95
33
33
Interpretation:
Out of the 76 outlets who sell Agarbatti, 33 outlets sell Ullas Agarbatti and 43 outlets do
not sell.
Other Agarbatti
Count
Agarbatti
no
yes
Total
Other Agarbatti
no
yes
19
17
59
36
59
Total
19
76
95
Interpretation:
Out of the 76 outlets who sell Agarbatti, 59 outlets sell Other brands of agarbatti and 17
outlets do not sell which shows that the convenience outlets prefer local brands to sell at
their shops because of the low price.
Vivel Soap
Count
Vivel
no
Soap
no
yes
yes
40
20
60
Total
Total
40
55
95
35
35
Interpretation:
Out of the 55 outlets who sell Soaps it was found that 35 outlets sell Vivel Soap and 20
outlets do not sell.
Santoor Soap
Count
Santoor
no
Soap
Total
no
yes
yes
40
16
56
Total
39
39
40
55
95
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ITC Ltd.
Interpretation:
Out of the 55 outlets who sell Soaps, 39 outlets sell Santoor Soap and 16 outlets do not
sell.
Lux Soap
Count
Lux
no
Soap
no
yes
yes
40
12
52
Total
Total
40
55
95
43
43
Interpretation:
Out of the 55 outlets who sell Soaps, 43 outlets sell Lux Soap and 12 outlets do not sell.
Lifebuoy Soap
Count
Lifebuoy
no
Soap
no
yes
Total
yes
40
15
55
Total
40
55
95
40
40
Interpretation:
Out of the 55 outlets who sell Soaps, 40 outlets sell Lifebuoy Soap and 15 outlets do not
sell.
Other Soaps
Count
Soap
no
yes
Total
Other Soaps
no
yes
40
30
25
70
25
Total
40
55
95
Interpretation:
Out of the 55 outlets who sell Soaps, 25 outlets sell Other brands Soap and 30 outlets do
not sell.
Bingo Chips
Count
Chips
Total
no
yes
Bingo Chips
no
yes
26
1
68
27
68
Total
26
69
95
Interpretation:
Out of the 69 outlets who sell Chips, 68 outlets sell Bingo Chips and 1 retailer does not
sell which show that the outlets prefer to place Bingo chips at their outlet more rather
than other brands.
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ITC Ltd.
Lays Chips
Count
Chips
no
yes
Total
Lays Chips
no
yes
26
50
19
76
19
Total
26
69
95
Interpretation:
Out of the 69 outlets who sell Chips, 19 outlets sell Lays Chips and 50 retailer do not sell.
It was a market leader before, but now Bingo has taken away some share in the market.
Parle Chips
Count
Chips
no
yes
Total
Parle Chips
no
yes
26
59
10
85
10
Total
26
69
95
Interpretation:
Out of the 69 outlets who sell Chips, 10 outlets sell Parle Chips and 59 retailer do not
sell.
Kurkure Chips
Count
Kurkure
no
Chips
no
yes
Total
yes
26
50
76
Total
26
69
95
19
19
Interpretation:
Out of the 69 outlets who sell Chips, 19 outlets sell Kurkure Chips and 50 retailer do not
sell.
Other Chips
Count
Chips
Total
no
yes
Other Chips
no
yes
26
45
24
71
24
Total
26
69
95
Interpretation:
Out of the 69 outlets who sell Chips, 24 outlets sell Other brands Chips and 45 retailer do
not sell.
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ITC Ltd.
Which brands products are sold more?

Biscuit
Sunfeast
Parle
Britannia
Other
%
25 36
39 57
5 7
0
45
40
35
30
25
20
15
10
39
25
0
Sunfeast
Parle
0
Other
Britannia
Interpretation:
Out of 69 outlets who sell Biscuits it was found that 36% outlets said they have highest
sale of Sunfeast biscuits, 57% said they have highest sale of Parle biscuits and 7% said
that they have highest sale of Britannia biscuits. It shows that Parle has more sales as
compared to other brands but Parle has high sales only because of their product Parle-G.
Confectionary
Candyman
Alpenliebe
Parle
61
6
8
Cadbury
Other
14
7
%
64.
2
6.3
8.4
14.
7
7.4
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ITC Ltd.
70
60
50
40
30
61
20
10
0
Candyman
Alpenliebe
Parle
14
Cadbury
7
Other
Interpretation:
From the graph we can interpret that Candyman has high sales in the market. Out of 95
outlets 64.2% outlets said Candyman, 6.3% said Alpenliebe, 8.4 said Parle, 14.7% said
Cadbury & 7.4% said Other brands.
Agarbatti
Mangaldeep
Cycle
Moksh
17
5
4
Ullas
Other
20
35
%
22.
4
6.6
5.3
26.
3
46
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ITC Ltd.
40
35
30
25
20
35
15
10
20
17
5
0
Mangaldeep
Cycle
Moksh
Ullas
Other
Interpretation:
From the graph we can interpret that Other Local brands of agarbatti has high sales in the
market. Out of 76 outlets 46% outlets said Other brands, 26.3% said Ullas, 22.4% said
Mangaldeep,6.6% said Cycle & 5.3% said Moksh.
SOAP
Vivel
Santoor
6
22
Lux
15
Lifebuoy
Other
15
1
%
10.
9
40
27.
2
27.
2
2
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ITC Ltd.
25
20
15
22
10
15
15
5
6
1
0
Vivel
Santoor
Lux
Lifebuoy
Other
Interpretation:
There is high sale of santoor from the convenience outlets when compared to other
competitors and the sale of Vivel soap is less.10.9% said there is a high sale of Vivel
soaps, 40% said santoor has high sales, 27.2 % said Lux and Lifebuoy,2% said Other
brands soap has high sales.
Chips
Bingo
Lays
Parle
Kurkur
e
Other
60
19
10
19
24
%
87
27.5
1.5
28
35
70
60
50
40
30
60
20
10
19
0
Bingo
Lays
10
Parle
19
24
Kurkure
Other
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ITC Ltd.
Interpretation:
There is a high sale of Bingo chips from the convenience outlets when compared to other
competitors like Lays, Parle, Kurkure and other brands.87% outlets said bingo has high
sales,27.5% said Lays has high sales, 1.5% said Parle has high sales,28% said Kurkure,
35% said other brands chips has high sales.
Why do you think these products are sold more?
Valid
Quality
Quantity
Brand Name
Easy Availability
Total
Frequency
24
3
24
44
95
Percent
25.3
3.2
25.3
46.3
100.0
Valid Percent
25.3
3.2
25.3
46.3
100.0
Cumulative
Percent
25.3
28.4
53.7
100.0

50
44
40
30
24
Fr e q u e n c y
20
24
10
0
Quality
Quantity
Brand Name
Easy Availability
Interpretation:
Out of the 95 outlets 25.3% said that there is high sale because of the quality of the
products, 3.2% said that it is because of quality that there is high sale, 25.3% said that its
because of brand name that the products are sold more and 46.3% said that its because of
the easy availability of the products in the outlet. We can say that if you make the product
available in the outlet then it has more chances of getting sold.
W ould you like to go for other FMCG products of ITC?
Valid
yes
no
Total
Frequency
37
38
75
Percent
49.3
50.7
100.0
Valid Percent
49.3
50.7
100.0
Cumulative
Percent
49.3
100.0
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ITC Ltd.
Would you like to go for other FMCG products of ITC?

40
37
38
30
Frequency
20
10
0
yes
no
Would you like to go for other FMCG products of ITC?
Interpretation:
Out of 75 Convenience outlets who do not sell some of the products of ITC , 49.3%
outlets are willing to place other ITC products in their shops and 50.7% of them do not
want to place other products of ITC. It shows that ITC has a good opportunity of placing
their products in these convenience outlets.
Which products would you like to go for?

Biscuit
Confectionary
Agarbatti
Soap
Chips
9
3
27
12
5
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ITC Ltd.
30
25
20
15
27
10
5
12
0
Biscuit
Confectionary Agarbatti
Soap
Chips
Interpretation:
9 outlets want to go for biscuits, 3 for confectionary, 27 for agarbatti, 12 for soap and 5
for chips so ITC has a good opportunity of placing these products in the convenience
outlets.
Are you ready to sell ITC's FMCG products?

Count
Are you ready to sell
ITC's FMCG products?
yes
no
Q1Do you sell
FMCG products?
Total
no
Total
Interpretation:
Out of 5 Convenience outlets who do not sell FMCG products like biscuit, confectionary,
agarbatti, soap and chips , 3 outlets are willing to place some ITC products in their shops
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ITC Ltd.
and 2 outlets are not interested in placing them. ITC has an opportunity of placing their
products in these outlets.
If Yes, which ITC FMCG products you would like to go for?
Q9BISCUIT
Valid
Frequency
5
no
Percent
100.0
Valid Percent
100.0
Cumulative
Percent
100.0
Q9BISC
6
Frequenc y
0
no
Q9BISC
Interpretation:
None of the outlets wants to place biscuits from the 5 convenience outlet who do not sell
FMCG products like biscuit, confectionary, agarbatti, soap, chips and the reason they
gave is that they dont want keep them.
Q9CONFECTIONARY
Valid
no
yes
Total
Frequency
2
3
5
Percent
40.0
60.0
100.0
Valid Percent
40.0
60.0
100.0
Cumulative
Percent
40.0
100.0
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ITC Ltd.
Q9CONFECTIONARY
3.5
3.0
3.0
2.5
2.0
2.0
1.5
Frequenc y
1.0
.5
0.0
no
yes
Q9CONF
Interpretation:
Here, 3 outlets are willing to keep confectionary of ITC in their shop out of 5
convenience outlets who do not sell FMCG products like biscuit, confectionary, agarbatti,
soap, chips. ITC has an opportunity of placing candyman in these outlets.
Q9AGARARBATTI
Valid
no
yes
Total
Frequency
4
1
5
Percent
80.0
20.0
100.0
Valid Percent
80.0
20.0
100.0
Cumulative
Percent
80.0
100.0
Q9AGARABATTI
5
Frequency
0
no
yes
Q9A GAR
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ITC Ltd.
Interpretation:
1outlet is willing to keep mangaldeep agarbatti of ITC in their shop, out of 5 convenience
outlets, who do not sell FMCG products like biscuit, confectionary, agarbatti, soap, chips
and it is an opportunity to place the product in the outlet.
Q9SOAP
Valid
Frequency
5
no
Percent
100.0
Valid Percent
100.0
Cumulative
Percent
100.0
Q9SOAP
6
Frequency
1
0
no
Q9SOAP
Interpretation:
None of the outlets are willing to keep Vivel Soap of ITC in their shop out of 5
soap, chips.
Q9CHIPS
Valid
no
Frequency
5
Percent
100.0
Valid Percent
100.0
Cumulative
Percent
100.0
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ITC Ltd.
Q9CHIPS
6
Frequency
0
no
Q9CHIPS
Interpretation:
None of the outlets are willing to keep Bingo Chips of ITC in their shop out of 5
soap, chips.
If No, Why?
Less Space
Low Demand
Less margin
Credit
Facility
18
19
8
4
Percentage
47
50
21
11
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ITC Ltd.
20
18
16
14
12
10
8
18
19
6
4
0
Less Space
Low Demand
Less margin
Credit Facility
Interpretation:
Out of 38 outlets who said no to other FMCG products of ITC, 50% outlets say there is a
low demand for the products, 47% say there is less space in the shop and few outlets say
there is less margin on the products and short credit facility. By this we can come to know
that most of the outlets are not selling the other FMCG products because of less space
that they have in their outlet and because of low demand for some of the products in their
area.
What is the satisfaction level with the schemes offered by ITC?
Valid
highly dissatisfied
dissatisfied
neutral
satisfied
highly satisfied
Total
Frequency
4
29
28
22
8
91
Percent
4.4
31.9
30.8
24.2
8.8
100.0
Valid Percent
4.4
31.9
30.8
24.2
8.8
100.0
Cumulative
Percent
4.4
36.3
67.0
91.2
100.0
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ITC Ltd.
What is the satisfaction level with the schemes

offered by ITC?
highly dissatisfied
highly satisfied
4.4%
8.8%
dissatisfied
satisfied
31.9%
24.2%
neutral
30.8%
Interpretation:
Out of 91 outlets 4.4% respondents said that they are highly dissatisfied, nearly 32% said
that they are dissatisfied, Nearly 31% said that they are neutral, 24.2% said they are
satisfied and 8.8% said that they are highly satisfied with the schemes offered by ITC. It
shows that majority of the outlets are dissatisfied and neutral.
What are your expectations from ITC to sell more of its products?
Regular Supply
Reasonable Pricing
Credit Facility
Offers
Others
6
49
14
42
11
Percentage
6.6
53.8
15.4
46.2
12.1
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ITC Ltd.
60
50
40
30
49
20
10
0
42
14
11
Interpretation:
Out of 91 outlets it was found that 54% say that they should get the products at a
reasonable price so that they can get a good margin of profit, 46% say that some offers
should be given to them and if done so, they will move our products more than the
competitors, 15% say that credit period should be extended so that they can make the
payments at ease and 7% say that a regular supply should given by the company.
FINDINGS
1. Out of 100 convenience outlets during the survey it was found that 95 outlets sell the
FMCG products like biscuit, confectionary, agarbatti, soap and chips and 5 outlets do not
sell the FMCG products. So ITC Company has an opportunity of placing the products in
these 5 outlets before any other competitor places.
2.Out of 95 outlets who sell FMCG products like biscuits, confectionary, agarbatti, soap
and chips, it is found that all the 95 outlets are selling confectionaries , 69 outlets are
selling Biscuits,76 outlets are selling Agarbatti, 55 outlet are selling Soaps and 69 outlet
are selling Chips.
3. Out of the 69 outlets who sell biscuits it was found that 60 outlets sell Sunfeast biscuits
and only 9 outlets dont sell the Sunfeast biscuit which shows that there is good market
share of Sunfeast biscuits in convenience outlets. But the other 9 outlets are the category
handlers of biscuit, so, ITC has an opportunity of placing their Sunfeast Biscuit in these 9
outlets.
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ITC Ltd.
4. Out of the 69 outlets who sell biscuits it was found that 58 outlets sell Parle biscuits
and 11outlets do not sell Parle biscuits. It shows that there is a high competition between
Sunfeast and Parle products.
5. Out of the 69 outlets who sell biscuits it was found that 39 outlets sell Britannia
biscuits and 30 outlets do not sell Britannia biscuits which shows that some part of
market share has been taken by Sunfeast products and market share of Britannia has
come down at present.
6. Out of the 69 outlets who sell biscuits, 9 outlets sell Other brand biscuits and 60 outlets
do not sell other brand biscuits like Oreo, Dukes etc
7. Out of the 95 outlets who sell confectionary it was found that 87 outlets sell Candyman
and only 8 outlets do not sell. This shows that there is a good market reach of Candyman
in convenience outlets. Those 8 outlets which do not sell candyman are category handlers
of confectionary and ITC has an opportunity to place Candyman in these outlets.
8. Out of the 95 outlets who sell confectionary it was found that 39 outlets sell
Alpenliebe,31 outlets sell Parle confectionaries 45 outlets sell Cadbury and 49 outlets sell
Other local confectionary brands.
9. Out of the 76 outlets who sell Agarbatti it was found that 41 outlets sell Mangaldeep
Agarbatti and 35 outlets do not sell which is a good figure as compared to the other big
competitors. ITC has an opportunity of placing Mangaldeep Agarbatti in these 35 outlets
who are the category handlers of agarbatti.
10. Out of the 76 outlets who sell Agarbatti it was found that 22 outlets sell Cycle
Agarbatti ,17 outlets sell Moksh Agarbatti, 33 outlets sell Ullas Agarbatti, 59 outlets sell
Other brands of agarbatti and which shows that the convenience outlets prefer local
brands to sell at their outlet because of the low price at which they get these products and
they have a good margin in these brands.
11. Out of the 55 outlets who sell Soaps it was found that 35 outlets sell Vivel Soap and
20 outlets do not sell Vivel soaps.ITC has an opportunity of placing Vivel Soap in these
20 outlets which are category handlers of soap.
12. Out of the 55 outlets who sell Soaps it was found that 39 outlets sell Santoor Soap, 43
outlets sell Lux Soap, 40 outlets sell Lifebuoy Soap , 25 outlets sell Other brands Soap
like Medimix,Breeze etc. Santoor, lifebuoy and Lux are found in moajority of the of the
convenience outlets because they are even available in Rs.5.
13. Out of the 69 outlets who sell Chips, 68 outlets sell Bingo Chips and 1 retailer does
not sell which show that the outlets prefer to place Bingo chips at their outlet more rather
than other brands and Bingo has a good market share in Hubli. ITC has an opportunity to
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ITC Ltd.
place Bingo in 26 outlets and make these outlets category handlers of chips before any
competitor place their product.
14. Out of the 69 outlets who sell Chips, 19 outlets sell Lays Chips, 10 outlets sell Parle
Chips, 19 outlets sell Kurkure and 24 outlets sell Other brands Chips like
Haldiram,Maiya etc.
15. Out of 69 outlets who sell Biscuits it was found that 36% outlets said they have
highest sale of Sunfeast biscuits, 57% said they have highest sale of Parle biscuits and 7%
said that they have hifgest sale of Britannia biscuits. It shows that Parle has more sale as
compared to other brands but Parle has more sale only because of their product Parle-G
which is preferred by most of the consumers.
16. From the graph we can interpret that Candyman has highest sales in the market. Out
of 95 outlets 64.2% outlets said Candyman, 6.3% said Alpenliebe, 8.4 said Parle, 14.7%
said Cadbury & 7.4% said Other brands.Candyman sales are high because of the varieties
of confectionaries and the market reach of ITC company.
17. From the graph we can interpret that Other Local brands of agarbatti has high sales in
the market. Out of 76 outlets 46% outlets said Other brands, 26.3% said Ullas, 22.4%
said Mangaldeep,6.6% said Cycle & 5.3% said Moksh. The sale of other local brands is
high because of the availability of these brands in the outlets.
18. There is high sale of santoor from the convenience outlets when compared to other
competitors and the sale of Vivel soap is less. There is high sale of santoor from the
convenience outlets when compared to other competitors and the sale of Vivel soap is
less.10.9% said there is a high sale of Vivel soaps, 40% said santoor has high sales, 27.2
% said Lux and Lifebuoy,2% said Other brands soap has high sales.
19.There is a high sale of Bingo chips from the convenience outlets when compared to
other competitors like Lays, Parle, Kurkure and other brands.87% outlets said bingo has
high sales,27.5% said Lays has high sales, 1.5% said Parle has high sales,28% said
Kurkure, 35% said other brands chips has high sales.
20. Out of the 95 outlets 25.3% said that there is high sale because of the quality of the
products, 3.2% said that it is because of quality that there is high sale, 25.3% said that its
because of brand name that the products are sold more and 46.3% said that its because of
the easy availability of the products in the outlet. We can say that if you make the product
available in the outlet then it has more chances of getting sold.
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ITC Ltd.
21. Out of 75 Convenience outlets who do not sell some of the products of ITC , 49.3%
outlets are willing to place other ITC products in their shops and 50.7% of them do not
want to place other products of ITC. It shows that ITC has a good opportunity of placing
their products in these convenience outlets.
22. Out of 5 Convenience outlets who do not sell FMCG products like biscuit,
confectionary, agarbatti, soap and chips , 3 outlets are willing to place some ITC products
in their shops and 2 outlets are not interested in placing them. ITC has an opportunity of
placing their products in these outlets.
23. None of the outlets wants to place Sunfeast biscuits, Vivel Soap and Bingo Chips
from the 5 convenience outlet who do not sell FMCG products like biscuit, confectionary,
agarbatti, soap, chips and the reason they gave is that they dont want keep them. 3
outlets are willing to keep confectionary of ITC in their shop out of 5 convenience outlets
who do not sell FMCG products like biscuit, confectionary, agarbatti, soap, chips. ITC
has an opportunity of placing candyman in these outlets and 1outlet is willing to keep
mangaldeep agarbatti of ITC in their shop and it is an opportunity to place the product in
the outlet.
24. Out of 38 outlets who said no to other FMCG products of ITC, 50% outlets say there
is a low demand for the products, 47% say there is less space in the shop and few outlets
say there is less margin on the products and short credit facility. By this we can come to
know that most of the outlets are not selling the other FMCG products because of less
space that they have in their outlet and because of low demand for some of the products
in their area.
25.Out of 91 outlets 4.4% respondents said that they are highly dissatisfied, nearly 32%
said that they are dissatisfied, Nearly 31% said that they are neutral, 24.2% said they are
satisfied and 8.8% said that they are highly satisfied with the schemes offered by ITC. It
shows that majority of the outlets are dissatisfied and neutral
26. Out of 91 outlets it was found that 54% say that they should get the products at a
reasonable price so that they can get a good margin of profit, 46% say that some offers
should be given to them and if done so, they will move our products more than the
competitors,15% say that credit period should be extended so that they can make the
payments at ease and 7% say that a regular supply should given by the company.
27. The outlets in Belgaum are co-operative when compared to Hubli outlets. Which
means that Convenience outlets in Belgaum are satisfied with ITC when compared to
Hubli outlets.
28.The workers in Belgaum are very dedicated in doing the given job and are punctual
and have a good product knowledge of all the products of the company and they have a
systematic way of telling the outlets which all products are available.
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ITC Ltd.
SUGGESTIONS
1. Steps should be taken by the company to create demand by more promotional

activities like giving merchandise of products in the convenience outlets.
2. Some offers should be given to the convenience outlets like if he does on the spot
payment then he will get 5 % discount so that they see larger benefit for them in
promoting and selling ITC products.
3. A proper CDM should be designed and a plan must be made to present all the
available products to the retailers in order to make them aware about the products
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ITC Ltd.
existing in the company. And training should be given to the Hawkers on the
same.
4. The offers given by the company and the distributor should not end at the
distributors or Hawkers, but it should be given to the convenience outlets which is
not happening.
5. At present in the market all the competitors are giving similar margin to the
outlets, but if some more margin is given to the outlets on the products then there
will be a good movement of products from the convenience outlet as they will try
and move the ITC products.
6. Convenience outlets ask for Rs.5 soaps when they are asked to place Vivel soap
so company should try to produce Rs.5 soaps.
7. The quality of the FLEXI PACKS agarbatti like Tarangini, Malligai, Champa etc
should be improved. The sticks do not burn properly and this is a complaint from
the outlets.
8. The products may be offered to the convenience outlets at the wholesale rates
from the distributors so that these outlets will not go to the wholesalers ignoring
distributors in the supply chain to buy the products.
9. FMCG products may be provided to the convenience outlets for display.
10. An increase in credit period given to the convenience outlets will help them repay
on time and the possibility of them stocking more ITC products will increase. At
present they give 1 week credit, which if increased to 2 weeks might help in
improving the sales at convenience stores drastically.
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ITC Ltd.
11. It would be fruitful if ready stock is practiced in Hubli rather than order capturing
because most of the time some of the ordered products are not in stock with the
distributors and the remaining unsold goods should be returned to the godown at
the end of the CDM route as it is practiced by the Belgaum Distributor.
CONCLUSION
I conclude that ITC has an good opportunity of placing FMCG products in

convenience market, as, average convenience outlets are willing to go for the ITC
products to be placed in their outlets.
The study conducted at ITC during my SIP tenure, helped me learn about the
working of the organization. It gave me a practical exposure to the corporate world. I
gained a lot of value added information that increased my confidence.
ITC is one of the best companies to work for. Through my study I tried making an
effort in understanding and providing certain suggestions which can be helpful for the
company if implemented.
ITC is doing good in marketing all the FMCG products but some improvements if
brought about in agarbattis and soap it can be even more productive for the company.
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ITC Ltd.
ANNEXURE:
Questionnaire
Dear Retailers,
I Akshay A Raikar, a student of KLESs IMSR Hubli, as a part of our
academic curriculum, I am under taking summer implant project titled A study on Opportunity
of FMCG products of ITC in convenience market in Hubli. I kindly request you to cooperate in my research work by responding to the questionnaire provided by me. The information
provided by you will be strictly utilized for academic purpose only.
Name of the Retailer
: ____________________________
Name of Outlet
: ____________________________
Address
: ____________________________
_____________________________
_____________________________
1) Do you sell FMCG products?

a) Yes [ ]
If no go to question no.8
b) No[ ]
2) Which of the FMCG products do you sell at your shop?
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ITC Ltd.
Biscuits [ ]
Confectionary [ ]
Agarbatti [ ]
Soap [ ]
Chips [ ]
3) Which brands FMCG products do you sell?

Biscuit :
Sunfeast
[ ] Parle
Confectionary:
Candyman [ ]Alpenliebe
Agarbatti:
Mangaldeep [ ]Cycle
Soap:
Vivel
[ ]Santoor
Chips:
Bingo
[ ]Lays
[
[
[
[
[
]Britannia [
]Parle
[
]Moksh [
]Lux
[
] Parle
[
] Other [
] Cadbury[
]
Ullas [
]Lifebuoy [
] Kurkure [
4) Which brands products are sold more?

Biscuit :
Sunfeast
[ ] Parle
Confectionary:
Candyman [ ]Alpenliebe
Agarbatti:
Mangaldeep [ ]Cycle
Soap:
Vivel
[ ]Santoor
Chips:
Bingo
[ ]Lays
[
[
[
[
[
]Britannia [
]Parle
[
] Moksh [
]Lux
[
]Parle
[
] Other [
]Cadbury[
] Ullas [
] Lifebuoy
] Kurkure
]
]Others [
]Others [
]Others [
]Others [
]
]
]
]
]
]Others [ ]
] Others [ ]
[ ]Others [ ]
[ ]Others [ ]
5) Why do you think these products are sold more?

a) Quality [ ] b) Quantity [ ] c) Brand Name [ ] d) Easy Availability [ ]
6) Would you like to go for other FMCG products of ITC?
a) Yes [ ] (go to question 7)
b) No [ ] (go to question 10)
7) Which products would you like to go for?
Biscuits [ ]
Confectionary [ ]
Agarbatti [ ]
Go to question no. 11
Soap [ ]
Chips [ ]
9) If yes, which ITC FMCG products you would like to go for?

Biscuits [ ]
Confectionary [ ]
Agarbatti [ ] Soap [ ]
Chips [ ]
8) Are you ready to sell ITCs FMCG products?

a) Yes [ ]
b) No [ ]
10) If No, Why?

a) Less space [ ]
b) Low demand [ ] c) Less margin [ ] d) Credit facility [ ]
11) What is the satisfaction level with the schemes offered by ITC?
Highly satisfied
[ ]
Satisfied
[ ]
Neutral
[ ]
Dissatisfied
[ ]
Highly dissatisfied
[ ]
12) What are your expectations from ITC to sell more of its products?
a) Regular supply
[ ]
b) Reasonable pricing
[ ]
c) Credit facility
[ ]
Page
ITC Ltd.
d) Offers
[ ]
e) Other _________________________
Signature
BIBLIOGRAPHY
Websites:
http://www.itcportal.com/
www.finax.in/files/.../Indian-FMCG-Industry-Update-Jan-2013_1.pdf
Books:
1) Philip Kotler, Kevin Lane Keller, Abraham Koshy, and Mithileshwar ,
Marketing Management, Pearson Private Ltd, New Delhi.
2) Tull Donald S and Hawkins Del, Marketing Research, Prentice Hall India
Private Ltd, New Delhi.
Page

ITC Ltd. FMCG Products Opportunity in Convenience Stores

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ITC Ltd.

KLESs Institute of Management Studies and Research, Hubli

Title of the study: A study on Opportunity of FMCG products of ITC in convenience

Objectives of the study:

To understand distribution of ITC products in convenience market.

To ascertain movement of ITC products in convenience market.

To know the competitive forces and their strategies.

To identify actions to be initiated to increase sale of ITC products through

: Convenience outlets (Pan Shops).

5. Method of data collection

6. Types of data being collected

: Primary data and Secondary data.

KLESs Institute of Management Studies and Research, Hubli

Food and Beverages

KLESs Institute of Management Studies and Research, Hubli

Risks and Challenges:

Major FMCG Players:

KLESs Institute of Management Studies and Research, Hubli

Hindustan Unilever Limited

Indian Tobacco Company

Procter and Gamble

KLESs Institute of Management Studies and Research, Hubli

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

KLESs Institute of Management Studies and Research, Hubli

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

KLESs Institute of Management Studies and Research, Hubli

ITC's Core Values:

KLESs Institute of Management Studies and Research, Hubli

As professional managers, we are conscious that ITC has been given to us in

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

Create multiple drivers of growth by developing a portfolio of world class

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

Benchmark the health of each business comprehensively across the criteria of

Enhance the competitive power of the portfolio through synergies derived by

Create distributed leadership within the organisation by nurturing talented and

Continuously strengthen and refine Corporate Governance processes and systems

KLESs Institute of Management Studies and Research, Hubli

KLESs Institute of Management Studies and Research, Hubli

KLESs Institute of Management Studies and Research, Hubli

KLESs Institute of Management Studies and Research, Hubli

KLESs Institute of Management Studies and Research, Hubli

The unwavering commitment to internationally benchmarked quality standards

KLESs Institute of Management Studies and Research, Hubli

KLESs Institute of Management Studies and Research, Hubli

KLESs Institute of Management Studies and Research, Hubli

KLESs Institute of Management Studies and Research, Hubli

product formulations use internationally recognised safe ingredients, subjected to the

Education and Stationery:

KLESs Institute of Management Studies and Research, Hubli

KLESs Institute of Management Studies and Research, Hubli

ITC-Welcomgroup was the first to introduce branded cuisine. Its restaurants

Paperboards & Specialty Papers

KLESs Institute of Management Studies and Research, Hubli

The product range includes:

Some of ITC's prominent paperboard brands are:

Poly coated boards: Indobev, Indobarr

PLA Coated boards: Omegabev, Omegabarr, Omegawrap

Recycled boards: Eco Blanca, Eco Natura

KLESs Institute of Management Studies and Research, Hubli

Farmer empowerment through e-Choupals

KLESs Institute of Management Studies and Research, Hubli

Objectives of the study: