A Project

Report

on

“A study of Role of Marketing and

Consumer services at ITC (FMCG)”

2019-2021

Faculty Mentor Submitted By:

Dr Tarun Agarwal Yash Gupta

1i|iPiaigie
 Batch 2019-2021

2i|iPiaigie
 DECLARATION BY THE STUDENT

I, Yash Gupta, student of PGDM batch (2019-2021) declare that the project
entitled The study of role of Marketing and Consumer Services, is my own
work conducted under the supervision of Dr Tarun Agarwal as a partial
fulfillment of Summer Internship Program for the course of PGDM submitted to
my faculty mentor and Jaipuria Institute of Management Indore. I further declare
that to the best of my knowledge the project does not contain any part of any work
which has been submitted for any other project either in this institute or in any
other without proper citation.

Place : Indore

Date: 6 July,2020 Signature of the Student

Signature of the Faculty

Mentor
Acknowledgement

I would like to take this opportunity to express my gratitude to the individuals who
assisted me in the completion of this project. I want to express my heartfelt gratitude to
Jaipuria Institute of Management, Indore for providing me this research-based project as
summer internship Programme. The supervision and support that he gave truly helped the
progression and smoothness of the internship program. I would like to thank Mr. Tarun
Agarwal (SIP Mentor) for his support and guidance throughout the project. Last but not
the least, I would like to thank my fellow colleagues for helping and giving me the
required information, valuable advices and suggestions to complete the project in a
comprehensive manner. The co-operations are much appreciated.
Executive Summary

The project was to analyze and understand the role of marketing and consumer services at
ITC (FMCG). I had done Company analysis, Industry analysis, analyze the sustainability
goals of the company, their main Marketing and HR practices at the organization. The
important task for this project is survey being done to understand the perception of the
customers and analyze the data for this data has been collected by floating a questionnaire
and analyzed by using different data analysis techniques in SPSS software. This report
highlights all the tasks that I have done in the project for two months.
 Table of Content

Chapter 1 INTRODUCTION
1.1 Problem Statement
1.2 Review of Related Literature / Text
1.3 Rationale of the Problem
1.4 Scope of the Study
1.5 Limitations of the Study

Chapter 2 DETAILS OF THE ORGANIZATION

2.1 Introduction
2.2 The Organization
2.2.1Products / Services and Processes/ Facilities
2.2.2Organization Structure
2.2.3HR Practices
2.2.4Competition Analysis
2.2.5 Industry Analysis (should be in detail)
2.3 Organization Business Profile
2.4 Other Relevant Information
2.5 PESTEL Framework Analysis of Company/ Michael Porter’s Five
Forces Model- Industry Analysis
2.6 Conclusion

Chapter 3 METHODOLOGY AND PROBLEM STATEMENT

Chapter 4 DATA COLLECTION AND ANALYSIS

4.1 Sampling Frame
4.2 Data Collection Method
4.3 Sources of Data Collection
4.4 Conclusion

Chapter 5 DATA ANALYSIS AND INTERPRETATION

5.1 Choice of Data Analysis Techniques
(Brief Description of the Choice of Techniques
Utilized and Justification)
 5.2 Outcomes and Interpretation of Outcomes
(Give A Consolidated Representation of Result of the
Analysis)
5.3 Conclusion

Chapter 6 RECOMMENDATIONS
6.1 Brief Description of Recommendations
6.2 Details of Each Recommendation, Discussion of Its Technical
Suitability, Economic Justification and Feasibility of
Implementation.
6.3 Conclusion

Chapter 7 CONCLUDING REMARKS

7.1 Summary
7.2 Gains from the Project
7.3 Limitations of the Project
7.4 Scope for Further Work
7.5 Conclusion
CHAPTER - 1
Introduction
1.1 Problem Statement

Competition is very high in today’s Market place. Every organization is therefore determined
to differentiate their services offering as compared to their competitor. In effect, every
company is trying to have unique features to promote their brand. If the company wants to
survive in the Market, it becomes necessary to adopt different Market Strategies and to keep
their customers satisfied, company should maintain their consumer services. It is imperative
that the brand managers should have practical tool to measure the effectiveness of their brand
in comparison to other competitive brands.

1.2 Review of Related Literature / Text

Marketing as a culture relates to a basic set of values and beliefs about the central importance
of the customer that guides the organization. According to Webster (p. 11), marketing as a
culture relates to the ability of an organization to assess market attractiveness (by analyzing
customer needs and competitive offerings in the marketplace) and potential competitive
effectiveness. Further, it involves promoting customer orientation by identifying customer
viewpoints and, finally, by developing the firm's overall value proposition which reflects
customer needs and wants that will be supported by the organization in the marketplace.
According to (Clay comb et al.,2001; Mills and Morris, 1986) Given customers’ inputs,
service providers are more able to tailor to the needs of customers, and thus promote a
favorable perception of service performance, which helps the company to understand the
Market.

1.3 Rationale of the Problem

The marketers of ITC need to understand the attitude of the consumers towards Marketing
and consumer services and how it affects their purchasing behavior which brings success and
help to increase the market share to the company. As study focuses on the factors that affect
the buying decisions of consumers in order to get reliable and valid results that helps to the
company to develop and improve their various strategies like promotional strategies,
marketing strategy, after sales service, etc. It will help the company to identify the problem
and the areas where they are lacking, so they can do the required improvement which helps
them to increase their Market share.
1.4 Scope of the Study

This research is helpful for the company to improve its further strategies like promotional
strategies, marketing, etc. and it will also help the company to identify their weakness that
where they are lacking, so they can improve in that area.

It will also help the researcher for their future researches as they can get some relevant
information from this research.
 CHAPTER – 2
DETAILS OF THE ORGANIZATION
2.1 Introduction
ITC Limited is a multinational Indian conglomerate company headquartered in Kolkata, West
Bengal.[5] Established in 1910 as India Limited 's Imperial Tobacco Company, the company
was renamed India Tobacco Company Limited in 1970 and later I.T.C. Limited in 1974. Now
the Company is rechristened as ITC Limited, where 'ITC' is no longer an acronym or an
initialized form today. The company celebrated 100 years in 2010 and had an annual revenue
of US$ 8.31 billion and a market capitalization of US$ 52 billion as of 2012–13. It employs
more than 30,000 people across India at more than 60 locations and is part of Forbes 2000
list. ITC Ltd is one of India's leading private sector enterprises. ITC has a diverse presence in
Packaging Agri-Business Packaged Products & Confectionery Information Technology
Branded Apparel Personal Care Stationery Safety Matches and other FMCG products at
Cigarettes Hotels Paperboards & Specialty Papers.

2.2 The Organization

2.2.1 Products / Services and Processes/ Facilities

These are the main products and services provided by ITC:

 Foods
 Tobacco
 Cigarettes
 Personal care products
 Stationery
 Safety Matches and Agarbattis
 Hotels
 Paperboard
 Packaging and Printing
 Information Technology
 Dairy Products

2.2.2 Organization Structure

ITC is headed by an Executive Director, who reports to the Secretary-General of the United

Nations Conference on Trade and Development (UNCTAD) and the Director-General of
the World Trade Organization (WTO). The Senior Management Committee (SMC) is made
up the two executive officers and the heads of ITC’s four divisions. Internally, our
organization is structured into the offices of the Executive Director and the Deputy Executive
Director, and four divisions with Divisional Directors at the head.
2.2.3 HR Practices

TRAINING

On the Job Training:

This form of training, the employee is put on a daily job and is taught the skills needed to do
the job. On-the-job preparation has the benefit of bringing the current working conditions
firsthand knowledge and experience udder.
 Coaching
 Work Guidance
 Off The Job Training:

The trainee is removed from the situation at work during this type of training and his
attention is focused on studying the material for his potential job success. Since the trainee is
distracted by work requirement, he will focus solely on learning the work instead of wasting
his time performing it.
 Vestibule Teaching
 Software Role Play Process
 Pictures / videos / computer training
 Discussion

Procedure Followed In ITC

1. Preparing the Instructor
2. Preparing the Trainee
3. Getting Ready to Teach
4. Presenting the Operation
5. Try out the Trainee’s Performance
6. Follow Up

2.2.4 Competition analysis

The top ten ITC competitors are Marico, Emami, Patanjali Ayurveda, HUL, P&G, Himalaya
Herbals, Baynath, Parle Agro, Dabur India and Ruchi. Together they have earned more than
475.4 M from their total 322.5 K employees. ITC has 27,279 employees and is ranked 3rd
among its top 10 competitors.

Emami: it was one of the biggest competitors at ITC. Emami has its headquarters in Kolkata,
West Bengal and was founded in 1974. Emami is active in the consumer goods business.
Emami produces ITC revenue of 5.71 per cent.

Marico: it is the top competitor on the ITC. Marico is a public company founded in 1990, in
Mumbai, Maharashtra. Marico works in the Human Resources market. Marico has a
workforce of 25,596 fewer than ITC.

Patanjali Ayurveda: it is seen as one of the greatest rivals ITC has to offer. Patanjali
Ayurved was founded at Haridwar, Uttaranchal, in 2006. Patanjali Ayurved competes in the
field of consumer goods. Patanjali Ayurved produces $5.2B less than ITC's revenues.

Performance: Over half a decade, ITC has resulted in much stronger revenue growth as
compared to HUL. Between 2013 and 2017, when HUL's revenue growth was 4.32 per cent
CAGR, ITC's growth was 6.04 per cent CAGR, greater than HUL's Net Profit Growth- the
ITC's profit growth was many times better than that of HUL. Although HUL had a profit
growth of 3.42 per cent of CAGR between 2013 and 2017, ITC had a far higher profit growth
of 6.58 per cent of CAGR.

2.2.5 Industry Analysis

Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are fast-selling
items at relatively low cost. Examples include non-lasting products such as processed foods,
drinks, toiletries, over-the-counter medications, and other consumables. Fast-moving
consumer products, commonly abbreviated FMCG, are quick-selling, non-durable products.
One of the main industries in the Indian economy is the FMCG market. According to an
analysis of the FMCG industry, FMCG sector revenues exceeded 52.75 billion dollars in
FY18, and are expected to reach 103.7 billion dollars in 2020. With consumption rising at an
unprecedented pace in India, the FMCG industry continues to be a key sector for investors. In
recognition of these developments in the profile of the FMCG industry, the Government of
India has undertaken various initiatives to encourage the sector. For example, 100 per cent
FDI is allowed in SBRT and cash-and-carry retail models, and the minimum capitalization to
invest in India for foreign FMCG companies is $100 million. Also, GST implementation has
had far-reaching implications in India
Even the introduction of GST in India has had far-reaching effects for the industry, since the
highest sales of FMCG items such as soap, toothpaste and hair oil are now below the 18% tax
bracket (as compared to the previous 24%)

2.3 PESTEL Analysis

Political Factors:

 Huge VAT burden – price increases will impact sales.

 Excise tax increased by 5 percent in the Union budget.
 Prohibition of contact.
 Luxury taxes among 10 states –which made it impossible for ITC Ltd to sustain the
degree of quality in rates for various locations.
  Smuggling of tobacco goods - 100 per cent FDI permitted-as that would allow many
Foreign Brands entering Indian Markets, & hence could affect ITC Ltd shares in the
Markets. Many packaged food products were excluded from licensing.

Economic Factors:

Economic factors are those factors relevant to Indian economy which ITC Limited India
First, such as inflation rate adjustments, foreign exchange rates, gross domestic product,
interest rates, and the ongoing stage of economic cycle. Such factors, and their resultant
effect on aggregate investment, aggregate demand, and overall business environment, have
the ability to make a company resulting in high profits or high likelihood to result in loss.

Social Factors:

ITC Limited India First's social factors are a direct representation of the society in which ITC
Limited India First works and includes the culture, views, behaviors & values that majority of
the population will result as a group. The influence of social factors is very much important
for ITC Limited India First's operational aspect and for the organization's marketing aspect. A
detailed analysis of the consumers, their lifestyles, levels of education and beliefs in a
community, or sections of society, would help to develop both the goods and marketing
messages which would contribute to a successful venture.

Technological Factors:

Technology can easily eradicate an industry's market structure and competitive environment
within a very short time frame. It is therefore extremely necessary to continuously and
consistently innovate, both in the interests of raising potential profits and being a market
leader and in the interests of avoiding discontinuance in the near future. There are many
examples of revolutionary goods that fully reinvent the rules of an industry as a whole: Lyft
and Uber dominate the industry of taxi cab; smartphones have made most phones not a
choice for many people and so on.

Environmental Factors:

Different companies have specific environmental quality requirements as standard in their

minds. This standard then determines what each organization will strive to, at least, avoid
being the object of advocacy bunches and prohibitions due to absence of environmental
awareness. For example, a textile company does not suffer same degree of environmental
destruction and pollution as an oil company. Because of global warming, the new customers
having the awareness and interests it brings, chooses to offer their businesses to the
companies that are more ethical, especially for the climate.

Legal Factors:

Government structures and institutions in a country, are subjected to the political party that
holds the majority of seats in a government body, are legal and hence, should be considered
in the PESTEL review. Many a times, ITC Ltd India First policies alone aren’t adequate to
adequately protect ITC Ltd India First and the company’s staff, rendering ITC Ltd India First
as an unwanted place of employment which could repel talented and professional staff.

Porter’s Five Model (Industry analysis)

 Barrier to Entry

The introduction of new entrants into a market increases competition rates, resulting in less
appealing. The challenge to new entrants is immensely based on entry barriers. Many
industries (e.g. shipbuilding) have high entry barriers while others with ease to join (e.g.
restaurants, estate agency). Some of the main barriers to entry are as follows-

o Economies of scale
o Requirements of Investment or Capital
o Switching costs among customers
o Approach to distribution channels of industry
o The probability of reprisal of existing industry leaders.

 Threat of substitute products

The existence of substitutes in FMCG reduces the attractiveness and competitiveness of the
industry because the price rates are reduced. The effect of substitute products depends on: the
ability of consumers to replace the relative price and output of substitute products, the cost of
moving to substitutes, the market for consumer goods is elastic, becoming an inexpensive
commodity.

 Bargaining Power of Supplier

In general, prices are regulated by international commodity markets, rendering most FMCG
companies as price-takers. FMCG companies secure better prices in periods of huge inputs’
cost inflation because of long term relationships with suppliers and like.

 Bargaining Power of Customers

Excessive brand loyalty for a company is limiting company change for consumers. Yet under
intense competition between the FMCG firms, low switching costs and aggressive marketing
tactics encourage customers to switch between goods and thus drive value for money deals
for customers. However, the bargaining power of consumers is weak in Indian due to the
large number of buyers and small suppliers.

 Rival’s Intensity

The competitive nature of Indian FMCG players is huge. The industry has become highly
fragmented with more MNCs entering the country. Publicity spending continues to build &
budgets and strategies for marketing are fetching high aggressiveness. Private labels put forth
by retailers at a discount to authorize brands also seen as a competition to indifferent and not
so strong brands.

2.4 Conclusion

By this chapter, we had understood about the company and Industry in brief, and it is helpful
to understand about the company that what are its strengths and where it needs to improve.
There are various factors which effects the company and decline their revenue, but if
company improve in those areas, it can generate its revenue and therefore it is helpful to
improve its growth.
 CHAPTER - 3
Methodology and Problem statement
Research Methodology

The methodology for research om the following topic:

This research is exploratory in nature because this is the preliminary research to analyze and
understand the exact role of Marketing and consumer service.
In this research, "convenience sampling" is being used as sample design, as the data is
collected by various people and group. Convenience sampling is a form of Non-probability
sampling technique. Non-probability sampling relies on the selection methods dependent on
the researcher 's decision. A convenience sampling is simply one in which the units selected
for inclusion in the sample are the easiest ones to access. For this survey, sample size was
150-200 people who are belong to different places and background.

For data collection method both primary and secondary data collection method are being used
for this. Primary data collection method gives the research first-hand information. It is the
most common method used by researchers to collect information directly for the respondents,
so the questionnaire would be asked to fill by different people and mostly by people who
would fall under the age of 18-45 years, because the people in this age group are having good
knowledge of Market. For Secondary data collection, data is collected from some external
sources so in this research different websites, research paper, articles have been used for
collecting the information.

Problem Statement

Competition is very high in today’s Market place. Every organization is therefore determined
to differentiate their services offering as compared to their competitor. In effect, every
company is trying to have unique features to promote their brand. If the company wants to
survive in the Market, it becomes necessary to adopt different Market Strategies and to keep
their customers satisfied, company should maintain their consumer services. It is imperative
that the brand managers should have practical tool to measure the effectiveness of their brand
in comparison to other competitive brands.
 CHAPTER – 4
Data Collection and Analysis
4.1 Sampling Frame

 Occupation

As we can see in pie chart that majorly data that is

37.2% is collected from the people who are professionals and then 38% of the data is
collected from the students, while 19% of the people belongs to the people Who are self-
employed and the remaining data that is 14.9% is collected from the people who are home
maker.

 Age

Data is collected from people of different age group. As we can see in the chart most of the
respondents belong to the age group of less than 25 years that is 42.1%, while 26.4% of the
people are belong to the age group of 36-45 years. Respondents falls in the age group of 26-
35 years are 20.7% and the remaining 10.7% of the people are belong to more than 45 years.
4.2 Data Collection Method

There are two methods of data collection primary and secondary. As this research is
preliminary in nature so both the sources have been used for data collection. Primary data
collection method gives the research first-hand information. It is the most common method
used by researchers to collect information directly for the respondents, so the questionnaire
would be asked to fill by different people and mostly by people who would fall under the age
of 18-45 years, because the people in this age group are having good knowledge of Market.
For Secondary data collection, data is collected from some external sources so in this
research different websites, research paper, articles have been used for collecting the
information.

4.3 Sources of Data collection

Sources that are being used for the research are mainly questionnaire as primary sources and
in Secondary source, different articles websites and literature paper has been used.
 CHAPTER – 5
Data Analysis and Interpretation
5.1 Choice of Data Analysis Techniques

For data analysis, I had used SPSS software and one-way anova and frequency distribution
has been used to find out the output.

5.2Outcomes and Interpretation of Outcomes

These are outputs of the various applied test:

 Test-1

ANOVA

According to you, at what extent does Marketing affects your purchase decision for
the Product?

Sum of Squares df Mean Square F Sig.

Between Groups .949 1 .949 2.538 .117

Within Groups 20.560 55 .374

Total 21.509 56

Since 0.117 > 0.05.

There is no significance difference between age and perception regarding effect of Marketing
on purchase decision, hence alternative hypothesis is rejected. It means that Marketing effects
their purchasing decisions.
  Test – 2

ANOVA

Does Marketing increase your reliability on the Brand?

Sum of Squares df Mean Square .

.
Between Groups .400 1 1.048 .310
.400

Within Groups 20.969 55 .381

Total 21.368 56

Total 21.368 56

There is no significant relationship as 0.310 > 0.05, there is not much difference between different age
group in relation to reliability on the brand through Marketing. Therefore, alternative hypothesis
Is rejected.

 Test - 3

ANOVA

At what extent you are satisfied with consumers services given by ITC?
Sum of df Mean Square F Sig.
Squares

Between Groups .030 1 .030 .085 .772

Within Groups 19.479 55 .354
Total 19.509 56
Since, 0.772 > 0.05

There is no significant relationship between Age and satisfaction through consumer

given by ITC. Therefore, null hypothesis is accepted.

 Which products of ITC are you aware of?

People are more aware of personal care products and Branded packaged foods as compared to
other products

 Where the advertisement of ITC is more visible to you?

Television and Social media is the platform where the advertisement is more visibe because
now a days people prefer these two platforms more rather than others, So ITC should use
these platform for their advertisement

 Other than ITC, which product do you use?

As seen in the above chart, P&G is the greatest competitor of ITC, HUL is also a good
competitor, so ITC should keep it in mind and should improvise their products and services to
compete with these brands.

 According to you, at what extent does Marketing affects your purchase decision
 for the Product?

Marketing affects the purchase decision of the consumers at great extent, so the company
should invest more on Marketing.

 Is consumer service help to increase satisfaction?



 According to
you, which
type of
Marketing is
more
appealing?
As creative and Entertaining ads are more appealing to attract customers more, so ITC should
make these types of ads so that demand for the products should increase.

CHAPTER – 6

Recommendation
6.1 Brief Description of Recommendations
 The company should invest for Marketing and Consumer services because it will help
to attract the customers and therefore revenue will increase.
 Television and Social Media Marketing is the most effective platform for advertising
the products as people prefer these platforms more as compared to others.
 P&G is one of the biggest competitor of ITC, so the company should improve their
strategies to compete with the products of P&G.
 As Marketing helps to increase the sales and help to generate more revenue, company
should focus on its promotional strategies.
 Company should make entertaining and creative ads to attract more cutomers.

6.2 Details of Each Recommendation Economic Justification and

Feasibility of Implementation.

 These recommendations are economically justify as if the company will

invest more in marketing and consumer services, it will help them to increase
their sales and generate more revenue, so it is profitable for the company.

 It is feasible to implement because it is not very difficult for the company and
it is profitable for long term.
 CHAPTER – 7
Concluding remarks
7.1 Summary

This project aims at analyzing the perception of customers regarding Marketing and
Consumer Services of ITC. Initially company analysis and industry analysis has been done to
understand about the company and Industry (FMCG). To understand the perception of
customers regarding the topic survey has been done to analyze their views. Through data
analysis, it can be concluded that Marketing and consumer services are important for the
growth of the company. It helps the company to attract more customers and to retain them.

7.2 Limitation of the Project

The biggest limitation for this project is that we have used convenience sampling based on
the availability of the respondent and due to the lockdown period, we were not able to done
the practical work, we are not able to get this survey physically so we didn’t get the
appropriate data.

7.3 Scope for the Further Work

This research is helpful for the company to improve its further strategies like promotional
strategies, marketing, etc. and it will also help the company to identify their weakness that
where they are lacking, so they can improve in that area.

It will also help the researcher for their future researches as they can get some relevant
information from this research.
7.4 Conclusion

This research project help to understand about the company ITC and FMCG sector. This
project helps to understand the perception of customers regarding Marketing and Consumer
services. It also helps to analyze the attitude of the customers regarding products of the ITC.
It will help the company to improve in the areas where they are lacking. It will suggest them
to improve their further marketing and promotional strategies.

REFERENCE:

 https://journals.sagepub.com/doi/abs/10.1177/00222429990634s117

 https://www.emerald.com/insight/content/doi/10.1108/030905603104540
37/full/html?fullSc=1&mbSc=1

 https://doc1.bibliothek.li/aca/FLMF037627.pdf

 https://www.google.com/url?
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2/08/itc-india-company-
analysis/amp/&ved=2ahUKEwjoxZWhxbjqAhWw6nMBHYv9DpgQFjA
HegQIDRAJ&usg=AOvVaw05bVWKOLIje3xTuWAjV9-C&ampcf=1