PROJECT REPORT

ON

COMPRATIVE STUDY OF BUYING PREFRENCES OF WILLS &

GOLD FLAKE

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

From

MAHARISHI DAYANAND UNIVERSITY, ROHTAK

(Session: 2018-2019)

SUBMITTED TO UNDER THE GUIDENCE OF SUBMITTED BY:

Controller OF MDU Mr. BAGHIRATH SACHIN KUMAR

ROHTAK (ASSISTANT PROFESSOR, BBA) CLASS - BBA 6th Sem.
Roll No- 90550055
REG - No -1611390899
UNI. Roll No…….

J. L. N. GOVT. COLLEGE
Sector- 16A, Faridabad – 121002 (HARYANA)

1
 DECLARATION

I, ROHIT KUMAR, ROLL NO………………., BBA 6th semester of the Pt. J. L. N Govt.
college, Faridabad do declare that the Project Report entitled “COMPARATIVE STUDY
OF CONSUMER PREFRENCES OF WILLS & GOLD LAKE” being submitted to the
MAHARISHI DAYANAND UNIVERSITY for the partial fulfillment of the requirement
for the degree of Bachelor of Business Administration is my own endeavors and it has not
been submitted earlier to any institute for any degree

(ROHIT KUMAR)

2
 PREFACE

For the deep inclination into the management concepts practical training is an important
aspect. Theoretical knowledge gives us the fundamental concepts of management, and
practical training teaches us those tact and skills, which are successfully employed to
capture today’s competitive market.

Theoretical Lecture must be correlated with practical training to make learning process
more effective and to judge and apply one’s theoretical knowledge/thus training plays an
important role in development and sharpening ones skills in the field of business
management and marketing.

This Project report has been in partial fulfillment of the requirement of BBA. The
obejective of my project was
“COMPARATIVE STUDY OF BUYING PREFRENCES OF WILLS & GOLD
LAKE”
The use of tobacco products is widespread throughout the world. Tobacco use is associated
with chronic health problems and is a major cause of death. This study reports the results
of the second wave of a prospective study of adult smokers. Gold Flake is the top brand of
cigarettes in india. It was launched by ITC in the seventies. They considered that consumer
have high and rising expectations of quality and services.
And all this will come out as position COMPARATIVE STUDY OF BUYING
PREFRENCES OF WILLS & GOLD LAKE.

This is a project on “COMPARATIVE STUDY OF BUYING PREFRENCES OF

WILLS & GOLD FLAKE”.

(SACHIN KUMAR)

3
 ACKNOWLEDGEMENT

I was delighted to avail this opportunity to thank all those who have contributed in our
efforts in the development of the project and making it a success, which would have been a
difficult, task otherwise.

I would like to express my gratitude to my guide Mrs. Preeta kaushik, who guided me
throughout the Project Report and special thanks for the care and concern shown by him.

I am highly thankful to Mr. Bhagwan Head of department of B.B.A. of Pt. J. L. N Govt.

college, Faridabad Faculty, which provide a chance to work on I.T.C. group.

In last but not a least, I am thankful to shopkeeper, smoker (student, employee, teacher)
which provide a time for questionnaires.

(ROHIT KUMAR)

4
 TABLE OF CONTENT
CHAPTER TITLE PAGE
NO. NO.
1 Introduction 6-8

2 Company Profile 9-30

3 Review of Literature 31-34

4 Research Methodology 35-36

5 Data Analysis & Interpretation 37-41

6 Finding 42-55

7 Limitation 56-57

8 Conclusion 58-65

9 Suggestion & Recommendations 66-67

10 Annuxure

(a) Bibliography 68
(B) questionnaire 69

5
CHAPTER NO. 1
INTRODUCTION

6
 INTRODUCTION

The use of tobacco products is widespread throughout the world. Tobacco use is associated
with chronic health problems and is a major cause of death. Although the prevalence of
smoking has declined in Thailand over the last decade, almost one in five Thais over the
age of 15 are smokers. Males are much more likely to smoke than are females.

The Thai government has responded to the negative health impacts of smoking by enacting
a series of laws and regulations designed to limit access to tobacco products, prohibit
tobacco use in specified public places, place bans on displaying cigarettes, and requiring
that pictoral warning information be placed on cigarette packets.

This study reports the results of the second wave of a prospective study of adult smokers.
The study is being carried out as part of the project ‘International Tobacco Control Policies
Survey:- Southeast Asia (Thailand) (ITC-SEA). The study has three major objectives: 1)
explore smoking behavior, knowledge of, and attitudes to, smoking, and knowledge of t
obacco policies; 2) analyze the individual and environmental determinants of smoking
behavior, and 3) evaluate the effects of tobacco control policies on smoking behavior. In
this report we focus on comparing the results from Wave 1 and Wave 2 of the study.
In Wave 1 of the study, 2,000 respondents aged 18 and over were sampled and interviewed
in January-February 2005. Only those persons who smoked were included in the sample.
Smokers were defined as those persons who had smoked at least 100 cigarettes in their
lifetime and currently smoked at least one cigarette per week. Both females and males were
eligible for sampling and had equal probabilities of selection, although only one male and
one female respondent could be selected from a household. The sample was designed to be
representative at the regional level and for rural and urban areas. The sample design was
stratified multi-stage sampling.

Immediately after the Wave 1 data collection was completed, the Thai Government
implemented several new policies designed to reduce the incidence of smoking. These
policies included the introduction of new warning displays on cigarette packets that were
illustrated by graphic pictures of the health impacts of smoking, and banning the display of
cigarettes at the point of sale. A comparison of Wave 1 and Wave 2 data collection provide
an opportunity to examine the
impact of these new policies.

In Wave 2, the study attempted to interview all those respondents who were interviewed in
Wave 1. A total of 1,568 were successfully re-interviewed in August-September 2006,
resulting in a follow-up rate of 78.4 percent. Only in Bangkok, did the follow-up rate fall
below 50 percent (47.5%). A replenishment sample of 512 adult smokers were also
selected and interviewed. In this report results are only provided for the 1,568 respondents
who were interviewed in both waves of the study. Where comparisons are made between
the two waves, the analysis treats each wave as a separate sample.

The report first provides a description of the recontact sample from Wave 1 and then
7
compares the Wave 1 and Wave 2 samples on a variety of indicators. Of the 1,568 persons
re-interviewed in Wave 2, 1,358 (87.2 percent) were smokers at Wave 2 and the remaining
200 (12.8 percent) had quit smoking in the interval between Wave 1 and Wave 2.

Males comprise 90.9 percent of the sample. The proportion of males is similar for the
group that still smoke and the group that has quit smoking. The average age of smokers is
49 and for those who have quit smoking the mean age is 53. Almost 75 percent of the
sample has a secondary school level of education and approximately 80 percent are
married.

Among the smokers, approximately one-half reported that their health was satisfactory.
This compares to the almost 75 percent of those who had quit smoking who stated that
their health was good or very good. Most smokers lived in households where at least one
household member smoked, while most persons who had quit smoking lived in households
where no one in the household smoked.

The average number of cigarettes smoked daily declined significantly from 13.3 in Wave 1
to 10.2 in Wave 2. There was a statistically shift between waves in the type of tobacco
smoked. In Wave 1, 34.7 percent smoked hand-rolled cigarettes only and this had increased
to 49.9 percent in Wave 2. This change is probably a result of tax increases implemented by
the government that increased the price of factory produced cigarettes.

From Wave 1 to Wave 2 there were increases in the proportions of respondents who
supported bans on smoking is a variety of public places, such as hospitals, airconditioned
and non air-conditioned restaurants, workplaces, places of workship and public transport.
However, there was a reduction in the percent reporting.

8
 CHAPTER NO. 2

COMPANY PROFILE

COMPANY PROFILE

9
ITC is one of India's foremost multi-business enterprise with a market capitalisation of US
$ 40 billion and a turnover of US $ 8 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 and as 'India's Most Admired Company' in a survey conducted by Fortune India
magazine and Hay Group. ITC also features as one of world's largest sustainable value
creator in the consumer goods industry in a study by the Boston Consulting Group. ITC
has been listed among India's Most Valuable Companies by Business Today magazine. The
Company is among India's '10 Most Valuable (Company) Brands', according to 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.
Multiple Drivers of Growth

ITC’s aspiration to create enduring value for the nation and its stakeholders is manifest in
its robust portfolio of traditional and greenfield businesses encompassing Fast Moving
Consumer Goods (FMCG), Hotels, Paperboards & Specialty Papers, Packaging,
Agri-Business, and Information Technology. This diversified presence in the businesses
of tomorrow is powered by a strategy to pursue multiple drivers of growth based on its
proven competencies, enterprise strengths and strong synergies between its businesses.
The competitiveness of ITC’s diverse businesses rest on the strong foundations of
institutional strengths derived from its deep consumer insights, cutting-edge Research &
Development, differentiated product development capacity, brand-building
capability, world-class manufacturing infrastructure, extensive rural linkages,
efficient trade marketing and distribution network and dedicated human resources.
ITC’s ability to leverage internal synergies residing across its diverse businesses lends a
unique source of competitive advantage to its products and services.
Within a relatively short span of time, ITC has established vital brands like Aashirvaad,
Sunfeast, Dark Fantasy, Delishus, Bingo!, Yippee!, Candyman, mint-o, Kitchens of
India in the Branded Foods space; Essenza Di Wills, Fiama Di Wills, Vivel, Vivel Cell
Renew, Engage and Superia in the Personal Care products segment; Classmate and
Paperkraft in Education & Stationery products; Wills Lifestyle and John Players in the
Lifestyle Apparel business; Mangaldeep in Agarbattis and Aim in the Safety Matches
segment. This growth has been rated by a Nielsen Report to be the fastest among the
consumer goods companies operating in India.

Creating Enduring Value

Today, ITC is India's leading Fast Moving Consumer Goods company, the clear market
leader in the Indian Paperboard and Packaging industry, a globally acknowledged pioneer
in farmer empowerment through its wide-reaching Agri Business and runs the greenest
luxury hotel chain in the world. ITC Infotech, a wholly-owned subsidiary, is one of India's
fast-growing IT companies in the mid-tier segment. This portfolio of rapidly growing
businesses considerably enhances ITC's capacity to generate growing value for the Indian
economy.
ITC's Agri-Business is one of India's largest exporters of agricultural products. The ITC
Group’s contribution to foreign exchange earnings over the last ten years amounted to
10
nearly US$ 6.8 billion, of which agri exports constituted 57%. The Company's 'e-Choupal'
initiative has enabled Indian agriculture significantly enhance its competitiveness by
empowering Indian farmers through the power of the Internet. This transformational
strategy has already become the subject matter of a case study at Harvard Business School
apart from receiving widespread global acclaim.
As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a
commitment beyond the market". In his own words: "ITC believes that its aspiration to
create enduring value for the nation provides the motive force to sustain growing
shareholder value. ITC practices this philosophy by not only driving each of its
businesses towards international competitiveness but by also consciously contributing to
enhancing the competitiveness of the larger value chain of which it is a part." ITC group
directly employs more than 32,000 people and the Company's Businesses and value-chains
generate around 6 million sustainable livelihoods many of whom live at the margin in rural
India.
Global Exemplar in Sustainability

Acknowledged as a global exemplar in sustainability, ITC is the only enterprise in the

world, of comparable dimensions to be carbon-positive, water-positive, and solid
waste recycling positive. A testimony to its commitment to a low carbon growth path -
over 43% of the total energy requirements of ITC is met from renewable sources. All ITC's
premium luxury hotels are LEED (Leadership in Energy and Environmental Design)
Platinum certified making it the "greenest luxury hotel chain" in the world. ITC's
Paperboards and Paper business is an icon of environmental stewardship.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.The Company continuously
endeavours to enhance its wealth generating capabilities in a globalising environment to
consistently reward more than 5,42,000 shareholders, fulfill the aspirations of its
stakeholders and meet societal expectations.
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.

In 1975 the Company launched its Hotels business with the acquisition of a hotel in
Chennai which was rechristened TTC-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
11
then ITC's Hotels business has grown to occupy a position of leadership, with 44 owned
and managed properties spread across India. It also has a marketing and reservation
arrangement with the Sheraton Corporation, the reputed international hotel chain.

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. 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 1985, ITC set up Surya Tobacco Co. in Nepal as a joint venture with the reputed Soaltee
group. In August 2002, Surya Tobacco became a subsidiary of ITC Limited. 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 setup the International
Business Division (IBD) for export of agri-commodities. The Division is today one of
India's largest exporters.

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

12
'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 segment with its
men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of
the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has
gained recognition from buyers and retailers as the single largest B-2-B platform for the
Fashion Design 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 India’s fastest growing global IT and IT-enabled

services companies and has established itself as a key player in offshore outsourcing,
providing outsourced IT solutions and services to leading global customers across key
focus verticals - 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,

13
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.
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands
include Spriha and 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 of shampoos in June 2008.

Recently, ITC's Packaging & Printing business has launched a line of high quality greeting
cards under the brand name 'Expressions'. ITC has also entered the Lifestyle Retailing
business with the Wills Sport range of international quality relaxed wear for men and
women. ITC has spun off its information technology business into a wholly owned
subsidiary, ITC InfoTech India Limited, to more aggressively pursue emerging
opportunities in this area.
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 all-round value
creation is backed by strong corporate governance policies and system. ITC's corporate
strategies are aimed at matching its core capabilities with market opportunities to produce

14
superior shareholder value.

The Key Corporate Strategies are:

• Continue to focus on the core businesses of Cigarettes & Tobacco, Hotels,

and Packaging & Paperboard.

• Ensure that each of its businesses meets the three criteria of sustainability, namely
Market Standing, Profitability and Internal Vitality. Exit from businesses which do not
meet these criteria within an agreed time frame.

15
• Ensure that each business is internationally competitive in the Indian global market.

• Create distributed leadership within the organization by nurturing talented and focused
top management teams for each of the businesses.

• Institute and practice a system of corporate governance appropriate to ITC's character

and constitution. Such a system of governance must achieve a wholesome balance between
the need for executive freedom for management and the requirement of a frame work for
effective accountability.

• Secure the future growth of the Company by creating new businesses which leverage the
strength of its core competencies, residing in various businesses.

16
 CORE VALUES
ITC's Core Values are aimed at developing a customer-focused, high-performance
organization which creates value for all its stakeholders:
Trusteeship
As professional managers, they are conscious that ITC has been given to them in "trust" by
all his stakeholders. ITC will redeem the trust reposed in us by continuously adding value
to ITC.
Customer focus
They will always be customer focused. They deliver what the customer needs in terms of
value, quality and satisfaction.
Respect for people
They will respect and value people and uphold humanness and human
dignity.
They will value differences in individual perspectives. They want
individuals to dream, create and experiment in pursuit of opportunities and
achieve leadership through teamwork.
Excellence
they will strive for excellence in whatever they do. They will do what is right, do it well
and win.
Innovation
They will constantly innovate and strive to better their processes, products, services and
management practices.

PREAMBLE

17
Over the years, ITC has evolved from a single product company to a multi-business
corporation. Its businesses are spread over a wide spectrum, ranging from cigarettes and
tobacco to hotels, packaging, paper and paperboards and international commodities
trading. Each of these businesses is vastly different from the others in its type, the state of
its evolution and the basic nature of its activity, all of which influence the choice of the
form of governance. The challenge of governance for ITC therefore lies in fashioning a
model that addresses the uniqueness of each of its businesses and yet strengthens the unity
of purpose of the Company as a whole.

Since the commencement of the liberalization process, India's economic scenario has
begun to alter radically. Globalization will not only significantly heighten business risks,
but will also compel Indian companies to adopt international norms of transparency and
good governance. Equally, in the resultant competitive context, freedom of executive
management and its ability to respond to the dynamics of a fast changing business
environment will be the new success factors. ITC's governance policy recognizes the
challenge of this new business reality in India.

18
 DEFINITION AND PURPOSE

ITC defines Corporate Governance as a systemic process by which companies are directed
and controlled to enhance their wealth generating capacity. Since large corporations
employ vast quantum of societal resources, they believe that the governance process should
ensure that these companies are managed in a manner that meets stake holder’s aspirations
and societal expectation.
CORE PRINCIPLES

ITC's Corporate Governance initiative is based on two core principles.

These are:

(l) Management must have the executive freedom to drive the enterprise forward without
undue restraints; and

(2) This freedom of management should be exercised within a framework of effective

accountability.

ITC believes that any meaningful policy on Corporate Governance must provide
empowerment to the executive management of the Company, and Simultaneously create a
mechanism of checks and balances which ensures that the decision making powers vested
in the executive management is not only not misused, but is used with care and
responsibility to meet stakeholder aspirations and societal expectations.

19
 GOVERNANCE STRUCTERE

Flowing from the philosophy and core principles, Corporate Governance in ITC shall take
place at three interlinked levels, namely -
Strategic supervision by the Board of Directors Strategic management by the
Corporate Management Committee Executive management by the Divisional Chief
Executive assisted by the Divisional Management Committee It is ITC's belief that the
right balance between freedom of management and accountability to shareholders can be
achieved by segregating strategic supervision from strategic and executive management.

The Board of Directors (Board) as trustees of the shareholders will exercise strategic
supervision through strategic direction and control, and seek accountability for effective
strategic management from the Corporate Management Committee (CMC). The CMC will
have the freedom, within Board approved direction and framework, to focus its attention
and energies on the strategic management of the Company. The Divisional Chief
Executive, assisted by the Divisional Management Committee, will have the freedom to
focus on the executive management of the divisional business.

The 3-tier governance structure thus ensures that:

(a) Strategic supervision (on behalf of the shareholders), being free from involvement
in the task of strategic management of the company, can be conducted by the Board
with objectivity, thereby sharpening accountability of management.

(b) Strategic management of the Company, uncluttered by the day-to-day tasks of

executive management, remains focused and energized; and

(c) Executive management of the divisional business, free from collective Strategic
responsibilities for ITC as a whole, gets focused on enhancing the quality, efficiency and
effectiveness of its business.

20
Roles:
The core roles of the various entities at the three levels of Corporate Governance will be as
follows:

Board of Directors (Board):

The primary role of the Board of Directors is that of trusteeship to protect and enhance
shareholder value through strategic supervision of ITC, its wholly owned subsidiaries and
their wholly owned subsidiaries. As trustees they will ensure that the Company has clear
goals relating to shareholder value and its growth. They should set strategic goals and seek
accountability for their fulfillment. They will provide direction, and exercise appropriate
control to ensure that the Company is managed in a manner that fulfills stakeholder
aspirations and societal expectations .The Board must periodically review its own
functioning to ensure that it is fulfilling its role.
The ITC Board will be a balanced Board, consisting of Executive and Non-Executive
Directors, the latter including independent professionals. Executive directors, including the
Executive Chairman, shall not generally exceed l/3rd of the total strength of the Board. The
Non-Executive Directors shall comprise eminent professionals, drawn from amongst
persons with experience in business / finance / law / public enterprises.

Directors shall be appointed / re-appointed for a period of three to five years, and in the
case of Executive Directors up to the date of their retirement, whichever is earlier. The
Board shall determine from time to time the retirement age for both Executive and Non-
Executive Directors. The Board shall specify the maximum number of company
Directorships which can be held by members of the ITC Board.

Non-Executive Directors are expected to play a critical role in imparting balance to the
Board processes by bringing an independent judgment to bear on issues of strategy,
performance, resources, standards of Company conduct, etc.

The Board shall meet at least six times a year and as far as possible meetings will be held
once in two months. The annual calendar of meetings shall be agreed upon at the beginning

21
of each year. As laid down in the Articles of Association of the Company, the quorum for
meetings shall be one third of members and decisions shall be taken by simple majority,
unless statutorily required otherwise.

Meetings shall be governed by a structured agenda. All major issues included in the agenda
shall be backed by comprehensive background information to enable the Board to take
informed decisions. Agenda papers, as far as practicable, shall be circulated at least three
working days prior to the meeting. Normally items for the Board Agenda, except those
emanating from Board Committees, shall have been examined by the CMC. Minutes shall
be circulated within 15 working days of the meeting and confirmed at the next meeting.
Board decisions shall record the related logic as far as practicable.
The Board shall have the following Committees whose terms of reference shall be
determined by the Board from time to time:

Audit Committee:

To provide assurance to the Board on the adequacy of internal control systems and
financial disclosures. The Head of Internal Audit will act as coordinator to the Audit
Committee, but will be administratively under the control of the Director accountable to
the Board for the Finance function.

Compensation Committee:
To recommend to the Board compensation terms for Executive Directors and the senior
most level of management below the Executive Directors.

Nominations Committee:
To recommend to the Board nominations for membership of the CMC and the Board, and
oversee succession for the senior most level of management below the Executive Directors.

Investor Services Committee:

To look into redressal of shareholder and investors grievances, approval of transmissions,
22
sub-division of shares, issue of duplicate shares, etc.
Terms of Reference of the Board Committees shall include:
- Objectives, Role, Responsibilities
- Authority / Powers
- Membership & Quorum
- Chairmanship
- Tenure
- Frequency of Meetings
The composition of these Committees will be as follows:-
Committee Members Chairman
Audit Committee Directors of the Company, as One of the
may be decided by the Board, Independent Directors,
with at least 3 members all to be determined by
being Non-Executive Directors the Board.
with majority of them being
independent; and the Director
accountable to the Board for the
Finance function, Head of
Internal Audit and
representative of External
Auditors as Permanent Invitees
with the Company Secretary as
the Secretary.
Compensation Non-Executive Directors as One of the
Committee may be decided by the Independent Directors,
Board, with the Director to be determined by
accountable to the Board for the
HR Function as the Secretary.

Nominations The Executive Chairman and Executive Chairman.

Committee all the Non-Executive
Directors.

23
Investor Services Directors of the Company, as One of the non-
Committee may be decided by the Board, Executive Directors,
With the company Secretary as to be determined by
the secretary. the board.
Normally meetings of the Board Committees shall be convened by their respective
Chairmen. However, any member of the Committee may, with the consent of the
concerned Chairman, convene a meeting of the Committee. The Chairmanship of Board
Committees shall be for two years at a time. Signed minutes of Board Committee meetings
shall be tabled for the Board's information as soon as possible. However, issues requiring
Board's attention/ approval should be tabled in the form of a note to the Board from the
Committee Chairman.In the event there are no issues to be brought before the Board by the
Audit Committee, the Chairman of the Audit Committee (strikethrough:) shall submit 'NIL'
report the Board.
Corporate Management Committee (CMC):
The primary role of the CMC is strategic management of the Company's businesses within
Board approved direction / framework. The CMC will operate under the superintendence
and control of the Board. The composition of the CMC will be determined by the Board
(based on the recommendation of the Nominations Committee), and will consist of all the
Executive Directors and three or four key senior members of management. Membership of
the CMC shall be reviewed by the Nominations Committee annually.
The CMC shall be convened and chaired by the Executive Chairman of the Company. The
Company Secretary shall be the Secretary of the CMC. The quorum for meetings will be
50% of the members, subject to a minimum of three members. Decisions will be taken by
simple majority. Minutes of CMC meetings shall be tabled before the Board for its
information. However, issues arising from CMC Meetings and requiring Board's approval /
attention should be tabled in the form of a note from the relevant Executive Director.
Agenda items shall be backed by comprehensive notes from the concerned member /
invitee, along with DMC approval where applicable. Agenda papers, as far as practicable,
shall be circulated at least three days prior to the meeting. The CMC shall normally meet
once a month.
Executive Chairman of ITC:
The Executive Chairman of ITC shall operate as the Chief Executive for ITC as a whole.

24
He shall be the Chairman of the Board and the CMC. His primary role is to provide
leadership to the Board
And CMC for realizing Company goals in accordance with the charter approved by the
Board. He shall be responsible for the working of the Board, for its balance of membership
(subject to Board and Shareholder approvals), for ensuring that all relevant issues are on
the agenda, for ensuring that all directors are enabled and encouraged to play a full part in
the activities of the Board.

He shall keep the Board informed on all matters of importance. He shall preside over the
General Meetings of shareholders. As Chairman of the CMC he will be responsible for its
working, for ensuring that all relevant issues are on the agenda, for ensuring that all CMC
members are enabled and encouraged to play a full part in its activities.

Executive Director:

a) As a member of the CMC, contribute to the strategic management of the Company's

businesses within Board approved direction / framework,
b) As Director accountable to the Board for a business (Line Director), assume overall
responsibility for its strategic management, including its governance processes and top
management effectiveness.
c) As Director accountable to the Board for a wholly owned subsidiary, or its wholly
owned subsidiary (Line Director), act as the custodian of ITC's interest and be responsible
for their governance in accordance with the charter approved by the Board.
d) As Director accountable to the Board for a particular corporate function (Line Director),
assume overall strategic responsibility for its performance.

Divisional Management Committee (PMC):

Executive management of the divisional business to realize tactical and strategic objectives

25
in accordance with CMC / Board approved plan. Composition of the DMC shall be
determined by the Line Director with the approval of the CMC. The Divisional CEO shall
convene and chair the DMC meetings. If the Divisional CEO, for any reason, is not in a
position to convene a required DMC meeting, he shall in writing delegate the power to
convene and chair the required meeting to one of the DMC members identified by name.
Such
Delegation should be either for a specific meeting or for meetings to be held during a
specific period of time. It cannot be a general, open-ended delegation. The key functions of
the Division shall be represented on the DMC. Normally the Divisional Financial
Controller, in addition to being a member, shall act as the Secretary to the DMC and will
be responsible for circulation and custody of agenda notes and minutes. The DMC shall
generally meet at least once a month to review Divisional performance and related issues.
Quorum for meetings shall be 50% of the members subject to a minimum of three
members.
Decisions will be taken by simple majority. Minutes of meetings shall be tabled before the
CMC for its information. Agenda items shall be backed by comprehensive notes from the
relevant member / invitee. Agenda papers, as far as practicable, shall be circulated at least
three days prior to the meeting.

Divisional CEO:
The Divisional CEO shall function as the Chief Operating Officer with executive
responsibility for day-to-day operation of the Divisional business, and shall provide
leadership to the Divisional Management Committee in its task of executive management
of the Divisional business.

BOARD COMMITTEE:

Audit Committee
26
Mr. S. B. Mathur Chairman
Dr. R. K. Kaul Member
Mr. P. B. Ramanujam Member
Mr. B. Vijayaraghavan Member
Mr. K. Vaidyanath Invitee
(Director responsible for the Finance Function)
Mr. S. Basu Invitee
(Head of Internal Audit)
Representative of Statutory Auditors Invitee
Mr. B. B. Chatterjee Secretary

Compensation Committee
Mr. S. H. Khan Chairman
Mr. S. B. Mathur Member
Mr. H. G. Powell Member
Dr. B. Sen Member

Investor Services Committee

Dr. R. K. Kaul Chairman
Mr. P. B. Ramanujam Member
Dr. B. Sen Member
Mr. A. Singh Member
Mr. B. Vijayaraghavan Member
Mr. B. B. Chatterjee Secretary

Nominations Committee
Y. C. Deveshwar Chairman
A. Baijal Member
R. K. Kaul Member
S. H. Khan Member
S. B. Mathur Member
D. K. Mehrotra Member
H. G. Powell Member
P. B. Ramanujam Member
B. Sen Member
B. Vijayaraghavan Member

27
FINANCIAL HILIGHTES

Balance Sheet as at 31st March, 2006-07

31st March, 2015 31st March, 2016

(Rs.in crores) (Rs.in crores)
I. SOURCES OF FUNDS
1. Shareholder’s Funds

28
a) Capital 376.86 376.22 -
c) Reserves and Surplus 11680.81 12057.67 10060.86 10437.08

2. Loan Funds
a) Secured Loans 5.57 60.87
b) Unsecured Loans 208.86 214.43 140.10 200.88
3. Deffered Tax-net 545.07 472.85
Total 12817.17 11110.81

II. APPLICATION OF FUNDS

1. Fixed Assets
a) Gross Block 8959.70 7134.31
b) Less : Depreciation 2790.87 2389.54
c) Net Block 6168.83 4744.77
d) Capital Work-in-Progress 1126.82 7295.65 866.14 5610.91
2. Investments 2934.55 3067.77
3. Current Assets, Loans
and Advances
a) Inventories 4050.52 3354.03
b) Sundry Debtors 736.93 636.69
c) Cash and Bank Balances 570.25 900.16
d) Other Current Assets 146.07 183.04
e) Loans and Advances 1515.50 1215.80
7019.27 6289.72

Less :
4. Current Liabilities and
Provisions
a) Liabilities 2786.97 2383.75
b) Provisions 1645.33 1472.84

29
 4432.30 3857.59

Net Current Assets 2586.97 2432.13

Total 12817.17 11110.81

CHAPTER NO- 3
REVIEW OF
30
 LITERATURE

Due to globalization world has become a village and whole world become a country. Due
to this we become very closer with the nations to interact and to share our ideas very easily.

With the liberalization of economy the Indian market scenario has changed. A large number
of Multinationals Companies have entered in the global market with advance Technology,
New innovative ideas, Strategies and Products.

Naturally competition become very tough, therefore it is necessary for the companies to
access the market before launching the product. And it is also necessary to the established
companies to make new strategies according to new market scenario and always access
their products as well as market, if we want to succeed in the new global market and then

31
one should adopt new technology or a new idea, which is used by your competitor.
Liberalization made a nimble market as well as nimble scenario where no any organization
wants to lose.

In Indian market many popular products have failed due to this cause. So proper marketing
of the product is necessary to satisfy the basic needs of the customer and maintain steady
demand of the product. Now ITC is one of the leading company in India .it has already
launched a varieties of the products, no doubt their quality is good. So company has only
one need and that is to maintain their quality and to increase sales.

As the market for the tobacco product is growing day-by-day and will have great demand
in the near future. Definitely, we should have ambition become market leader in each and
every field.

Hence it is important to find out the company's position and the pros & cons of the policies
adopted by the company as well as the product of the company

The main objective of the study is to find out comparative market share of WILLS &
GOLD FLAK and analyze how the market of tobacco will increase in global market.

The main objective of our study is to know that comparative market share of WILLS &
GOLD FLAK and if any step can be taken for the betterment of the company that would be
good. Thus there are following important objectives of the study: -

• To know the impact of marketing strategies of WILLS and GOLD FLAKE on

customers.

• To know the various strategies taken by the company to improve their market.

• To suggest remedial action against the existing problems.

32
The present research project appears to be an important programme for the student of
MBA. Such type of project gives an idea of different marketing activities and taking tactful
and quick decision of any problem comes out before an executive.

The main scope of the study is to ascertain various methods to increase the sales volume of
the concern. However, only research project is not sufficient to understand fully but an over
all ideas can be developed.

The project covers the analytical study of 'Imperial Tobacco Company of India Limited.
The various parameters forming the basis of study were product range, service network,
principles, performance and values .

Different variables such as quality satisfaction level and brand loyalty have been analyzed

33
considering consumer priorities. This particular project is a mirror, which clear the picture
of cigarette smoker of wills and gold flake.

The project covers full description of the profile and achievements of ITC and the analysis
of the financial data and turnover of the company, It also includes the consumer
perceptions about the company and the total market share as compared to its competitors.

34
 CHAPTER NO. 4

RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY

The methodology refers to the techniques and methods needed for systematic Study of any
problem. In a business concern generally two different techniques are used for the study.
These techniques are questionnaire and interview. In the comparison of WILLS & GOLD
FLAKE. One of these two techniques frequently adopted by me was questionnaires, which
was more suitable in the study.
Questionnaire was face-to-face interaction between the investigator and respondent. These
techniques help the interviewer to look in to into inner life of the respondent. The problems

35
of the customers can be studied through the questionnaire techniques.

The Questionnaire techniques are applied in different ways. Open ended questionnaires
were formed for customers

CHAPTER NO-5

36
 DATA ANALYSIS
&
INTERPRETATION

DATA COLLECTIION METHOD

In this study the collection process, some structural approach has been adopted in which
list of the question were specified in the form of a questionnaire.

Questionnaire has been major tool for the data collection in our study .The main objective
of our questionnaire is to get the information about cigarette which the consumer currently
smokes.

Number of Customer Targeted:- Over 50 questionnaires were filled to make the study.

37
Research locations:- Location like Priya, Saket, South extension, GK- II, Green Park and
other places were the area of research in the South Delhi. Other areas of research were
lajpat nagar , sarojini nagar and in Delhi. The information were mainly collected from
metropolitan mall, Sahara mall, gurgaon and other areas. Information was also collected
from Faridabad.

It would not be wrong to say that the data collection act like blood in today's competitive
world big business houses and even small collect information about why their expected
product failed or succeed and just remained under average. A business organization can do
this thigh by the collection of information from the general public, which is technically
termed as data collection.
In today's world each industry set up its own different department, which is concern with
the collection of data, which may be by means of:
(l) Questionnaire
(2) Interview
(3) Scheduling

Now each of this method is explain as under.

QUESTIONNAIRE:
It is the most frequently used method of data collection. In this method a sequences of
question are prepared to collect the information from the prospective customer. The
sequences of question should be easy to difficult so that the customer find it easy to
answer. In questionnaire a set of question is printed on paper and is posted to customer.
SCHEDULING:
In scheduling a special person is appointed for this purpose and he himself goes to the
prospective customer and ask him the questions with eye-to-eye contact. This method is
more flexible because answer can be analysis on the spot.
INTERVIEW:
It is the most traditional used method for the collection of the information there is a room
38
in which there is only one interviewer and one interviewee. Interviewer asks the question,
which are not preplanned, and record the information.
In my Training I have to find out the comparative market share of WILL'S & GOLD
FLAKE in market for this I have a Questionnaire, which includes questions like:
(1) Which brand of cigarette you smoke? (2)Why do you prefer it?
With all these and more questions we find out how many consumers are smoking wills and
how many smoking gold flake cigarette and why consumers prefer particular brand. My
method of data collection was the combination of questionnaire and interview, because the
customer fills the questionnaire and I deal with the person face to face so it is the
combination of both.

SOCIAL RESPONSE:
Well it's not all that easy to do work or to do your own work done through others, when we
talked to the consumers about his smoking brand they strictly refused. Some are easily give
information about his smoking, something that I may take their secret information and
some is so rude that we have to be very patience at some place but it was experience of life.

Pictorial representation of the market shares of Wills & Gold flake and its
competitor:

39
60

50

40
WILLS
30 GOLD FLAKE
OTHER
20

10

40
Pictorial representation of the market shares of Wills & Gold flake and its competitor

WILLS
GOLD FLAKE
OTHER

ANALYSIS

Different variables such as quality satisfaction level and brand loyalty have been analyzed
considering consumer priorities, it's clear that the most of the consumer prefer quality
product and second priority to the price of the product. The third priority is given to the
41
availability; the consideration is given to the brand loyalty. The last most consideration is
given to the solder ability problem.

CHAPTER NO- 6
FINDINGS

42
MARKETING FUCTIONS

The most widely accepted classification of marketing function is given by Clark and Clark
which is given below

MARKETING

Factions Functions of Facilitating

Exchange Physical supplies Function
1. Buying and 1. Transportation 1. Financing
Assembling 2. Storage or 2.Risktaking
2.Selling and Warehousing 3.Standardisation
Dividing or grading
4. Market
Information
A new list of marketing functions has recently been adopted to suit the changed concept of
marketing. These functions are:
1.Contractual - Searching of buyers and sellers.
2.Merchandising - the fitting of goods to market.
3. Pricing - the selection of price to induce customers
to Good.

43
4.Propaganda - the creation of customers.
S.Pysical Distribution - the transporting and storing of goods.

How Marketing Bridges the gaps between Producers and consumers

Gap How marketing bridges the

Space: - Assembly, transportation and Distribution.
Time: - Storage, financing and risk Taking.
Perception (knowledge):- Communication mass media
Ownership: - Customer contact, Termination of Sale.
Value: - Price, terms of sale.

Thus, in order to satisfy consumer's products must be made available to consumers in the
right form, on the right time, at the right place and in the right manner. The very existence
of business lies in this process. Marketing performs this process.

44
 AWARDS
ITC's Cigarettes business has won numerous awards for its quality, environmental
management systems and product excellence:
 The Kolkata, Bangalore and Saharanpur factories have received the ISO 14001
accreditation for their environmental management systems. The Munger and
Bangalore factories have received the prestigious Sword of Honor Award from the
British Safety Council for highest standards of safety.
 The Munger and Bangalore factories have been bestowed with the National Safety
Award, UK and the Gold Award from ROSPA (Royal Society for Prevention of
Accidents), UK.
 All cigarettes factories have ISO 9002 quality certification. ITC's Tobacco
Technology Centre at Peenya, Bangalore has the distinction of being the first
independent R&D centre in India to get ISO 9001 accreditation.
 The Kolkata factory has won the Rajeev Gandhi National Quality Award (Best in
Eastern Region) for 1998.
Kolkata factory is the first among cigarette factories in the world to be awarded the
ISO 14001 certification.

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it
has a leadership position in every segment of the market. It's highly popular portfolio of
brands includes India Kings, Gold Flake, Wills, Scissors, Capstan, Berkeley and Bristol.
ITC's leadership is founded on its core strategy of continuously enhancing product values
through significant investments in manufacturing and packaging technology, marketing and
distribution. In just the last 5 years, ITC has invested Rs. 8.5 billion in its cigarettes
business. For ITC, one of the pioneers of market research in India, the consumer is still the
King. The Company continuously endeavors to provide its consumers products that are
benchmarked to international quality. This strategic focus on the consumer has paid ITC
handsome dividends. The most important of these is its enriched product mix, unmatched
by competition. ITC's share of filter cigarettes in the country is more than 70%.
In pursuit of international competitiveness, ITC has launched four brands -Checkers, Hi-
Val, Royal Classic and Gold Crest - in the extremely competitive US market. These brands
are currently notching up sales of over 1 billion sticks a year. ITC's cigarettes are produced

45
in its state-of-the-art factories at Bangalore, Munger, Saharanpur and Kolkata. These
factories are known for their high levels of productivity and very contemporary work
environment.
ITC's cigarette business has one of the largest retail networks in the country, consisting of
over 2 million retailers. Its reach covers a wide range of the retail spectrum, from premium
outlets in the metros to small shops in the interiors of rural India.

 a 'will do ' attitude

 IQ and EQ

 team skills

 ability to think strategically

 high energy

 creativity

 leadership

ITC FOCUS ON VALUE ADDITION

46
ITC focus on value addition to enhance competencies. They believe professional growth is
the responsibility of both the individual and the organization. They provide opportunities
for value addition through:

• Exposure to World Class Manufacturing Facilities and Practices

• Exposure to Internationally Benchmarked Marketing Practices

• Formal Training and Development programmes in India and overseas

• Membership of Multidisciplinary Task Forces and Project Teams Focused Leadership

Development initiatives.

• Cross Functional and Cross Business Opportunities.

THE KIND OF PEOPLE WE LOOK FOR

ITC do not believe in stereotypes. We believe diversity is essential for building a

wholesome work environment. But there are certain basic attributes they look for:

 integrity

 intellectual rigor

47
 CAREERS WITH ITC

ITC LTD has been the recipient of the following awards:

 The Rajeev Gandhi National Quality Award in the "Best of All' category
for 1994 and 1995 from the Government of India.
 National Safety Awards from the British Safety Council
 Swords of Honour from the British Safety Council
 ROSPA Gold Awards from the Royal Society for Prevention of
Accidents(ROSPA)
 Special Commendation Safety Certificate from the Ministry of
Labour,GovernmentofIndia.
 Golden Peacock Environment Management Award in 1999 from the World
Environment Foundation.

Qualified and trained managers and support staff constantly assist the tobacco farmer in
assimilating new ideas in quality and productivity. ITC also co-operates with Government
agencies to develop new varieties of tobacco, and to develop new areas for tobacco
cultivation.

48
The first 10 units in the world to bag the Social Accountability (SA 8000) certification.

Retail visionary of the Year from Images, India's only fashion and retail trade magazine.

ITC Chairman Y C Deveshwar has received several honors over the years. Notable among
them are:

Year Award

2007 SAM/SPG Sustainability Leadership Award conferred at the

International Sustainability Leadership Symposium, Zurich.
2006 Business Person of the Year from UK Trade & Investment, the UK
Government organisation that supports overseas businesses in that
country.
2006 Inducted into the `Hall of Pride' by the 93rd Indian Science
Congress
2005 Honoured with the Teacher's Lifetime Achievement Award
2001 Manager Entrepreneur of the Year from Ernst & Young Retail
Visionary of the Year from Images, India's only fashion and retail
trade magazine
1998 Honorary Fellowship from the All India Management Association
1996 Distinguished Alumni Award from IIT, Delhi
1994 Marketing Man of the Year from A&M, the leading marketing
magazine
1986 Meridien Hotelier of the Year

ITC's corporate website, www.itcportal.com, has received numerous accolades for

excellence of design, graphics and visuals and for its informative, well-presented and easy-
to-access content.

ITC constantly endeavors to benchmark its products, services and processes to global
standards. The Company's pursuit of excellence has earned it national and international
honors. A recent 'Far Eastern Economic Review' survey of Indian companies on various
parameters ranked ITC eighth among the top ten corporations in the country. The ET 500
survey by The Economic Times', rating companies on the basis of market capitalizations,
ranks ITC 6th among 500 listed Indian companies.

49
ITC's manufacturing units and hotels have notched up several firsts to their credit:The
Company's Green Leaf Threshing plants at Chirala and Anaparti in Andhra Pradesh are the
first units of their kind in the world to get ISO 14001 environment management systems
certification.

ITC's cigarette factory in Kolkata is the first such unit in India to get ISO 9000 quality
certification and the first among cigarette factories in the world to be awarded the ISO
14001 certification.

ITC Hotel Maurya Sheraton in New Delhi is the first hotel in India to get the coveted ISO
14001 Environment Management Systems certification.

ITC Filtrona is the first cigarette filter company in the world to obtain ISO 14001.ITC
InfoTech finds pride of place among a select group of SEI CMM Level 5 companies in the
world.

ITC's Green Leaf Threshing plant in Chirala is the first in India and among

The Tiruvottiyur factory of the Packaging business remained closed from ISthNovember,
2001 in the face of renewed industrial unrest. However, actioning of contingency plans is
ensuring uninterrupted supplies of packaging to the cigarettes & tobacco business.

GLOBAL HONOURS

Domestic cigarette volumes continue to remain under pressure due to the steep increase in
excise duties imposed in the last Union Budget and the adverse impact of the growing
contraband trade in cigarettes. As a result, the share of cigarettes in India's tobacco
consumption has further declined this year to about 14%, with increased share accruing to
other forms of tobacco Consumption. The Company's sustained focus on investment in
brands enabled a deceleration in the rate of de-growth of domestic cigarette volumes
during the quarter. In continuation of the Company's strategy to constantly upgrade its
product range to cater to a variety of tastes and flavor options, the third quarter witnessed

50
the launch of Wills Navy Cut Lights. Initial market response has been encouraging.

The scale-up of the Lifestyle Retailing business is on schedule, with seven new stores
opening during the quarter. Currently, 29 'Wills Lifestyle' stores are operational across the
country, providing world-class products and
shopping experience to discerning consumers. The recently launched 'Kitchens of India'
range of premium, value-added packaged foods now includes 'Dal Bukhara', 'Kundan
Qaliya' and 'Chicken Chettinad'. The Greeting Cards SBU, which entered into a strategic
alliance with the SOS Children's Villages of India, achieved a significant growth in
institutional sales during the quarter. The steep worldwide decline in business and leisure
travel, combined with the gestation of new properties considerably impacted the results of
the Company's Hotels business. Although the market is expected to remain depressed in the
near term, the long term potential of this industry in India remains exciting. The projects at
Kolkata and Upper Worli, Mumbai are progressing satisfactorily and are expected to open
by end 2002.
The results of the Agri-business segment reflect the impact of the crop holiday declared by
the Tobacco Board in Andhra Pradesh. While exports of agri commodities other than leaf
tobacco grew by 24% in rupee terms during the quarter, segment results were adversely
affected by the slump in the prices of marine products to their lowest levels in the last ten
years downturn in the U.S. and Japan.

(7) Segment capital employed shown above does not include unallocated corporate net
assets including investments, of approximately Rs. 1765 Crores, largely deployed as
follows :
(a) Investments in ITC Bhadrachalam Paperboards
(Rs.Crores)
Equity and Preference Capital 342
Loans 281
Total 623
(b) Exposures in assets consequent to exiting 884
the Financial Services & Edible Oils businesses

51
Commentary on Performance:
ITC's results for the nine month period ending 31st December, 2008 reflect resilience in the
face of the current difficult business environment, particularly for consumer goods and
travel & tourism. The Company continued to maintain its topline growth during the third
quarter, posting an increase of nearly 8% in Net Turnover. Nine-month post-tax profits
registered a growth of 22.5%. Provision for taxation includes the impact of deferred
taxation, both for the current and the previous year periods to facilitate comparison.

The expenditure profile in the third quarter reflects the Company's continuing emphasis on
strategic cost management. Staff cost for the quarter was higher consequent to the impact
of voluntary retirement schemes. Interest cost for the quarter is lower by Rs.ll crores,
reflecting the continuing impact of debt reduction. Effective cost control has helped absorb
the impact of start-up costs of new businesses, namely Lifestyle Retailing, Greeting Cards
and Packaged Foods.
Agri Business - Leaf Tobacco & Aqn Aqn Business
commodities.
(3) Details shown against "FMCG - Others" pertain to the Company's new businesses
namely, Branded Garments, Greeting Cards and Packaged Foods. Since these businesses
are presently engaged in product development and scaling up operations, segment results
largely reflect start up costs.
(4) In its Hotels business, the Company has been engaged in implementing its strategic
investment plans to complete the ITC –Welcome group chain. Capital employed of Rs. 740
Crores includes Rs. 641 Crores relating to the recently opened properties, namely ITC One
in New Delhi and ITC Grand Maratha in Mumbai, as well as capital work in progress in
respect of properties under construction.
The segment results reflect the gestation cost of the newly opened properties, the impact of
the global slump in international travel post the

11th September events and the holding cost in respect of Searock Sheraton which has been
the subject matter of a prolonged legal dispute. Depressed market conditions are expected
to continue in the near term,

52
(5) The Company's paperboards business, currently residing in its subsidiary, ITC
Bhadrachalam Paperboards Ltd., will form part of the Paper & Packaging business group
upon merger with the Company. The progress of the amalgamation process is shown under
Note (iv).

(6) The Company's Agri Business is engaged in exports, supply of agri commodities to the
planned Foods business and leaf tobacco to the Cigarettes business. The segment results
have been impacted by the tobacco crop holiday and difficult global trading conditions
particularly relating to exports of marine products which have been adversely affected bv
the continuina economic

* Before considering provision of Rs 567 Crores in respect of disputed State taxes, the
levy/collection of which has been stayed.

Notes :
(1) The Company's corporate strategy aims at creating multiple drivers of growth anchored
on its core competencies.The Company is currently focused on four business groups :
FMCG, Hotels, Paper & Packaging, and Agri Business. The Company's organisational
structure and governance processes have been designed to support effective management
of multiple businesses while retaining focus on each one of them.
(2) The business groups comprise the following :

FMCG: Cigarettes - Cigarettes & Smoking mixtures,

Others
- Branded Garments, Greeting Cards and Packaged Foods.
Hotels - Hoteliering.
Paper & Packaging - Specialty Paper & Packaging

53
Segment wise Revenue. Results and Capital
Employed,under Clause 41 of the Listing Agreement
For The Quarter and Nine Months Ended 31st
December, 2008 (Rs. in Crores)
3 months ended 9 months ended 31.12.2008
1. Segment Revenue
a) FMCG – Cigarettes 2038.89 6053.89
- Others 9.22 16.70
- Total FMCG 2048.11 6070.59

b) Hotels 39.80 113.38

c) Agri Business 333.36 724.80
d) Paper & Packaging 112.14 366.43

Total 2533.41 7275.20

Less : Inter segment 140.75 373.35

Revenue

Gross Sales/Income from 2392.66 6901.85

Operations

2. Segment Results

a) FMCG – Cigarettes 425.77 1344.01

Others -18.32 -48.94
Total GMCG 407.45 1295.07
b) Hotels -1.66 -4.41
c) Agri Business -3.06 2.75

54
d) Paper & Packaging 20.56 65.53

Total 423.29 1358.94

Less : I) Interest (Net) 11.46 45.22

II) Other un-allocable -4.66 -54.70

Expenditure

Net of un-allocable income

Total Profit Before Tax 416.49 1368.42

3. Capital Employed

a) FMCG –Cigarettes 1346.38 1346.38

Others 34.48 34.48

Total FMCG 1380.86 1380.86

b) Hotels 739.63 739.63

c) Agri Business 438.27 438.27

d) Paper & Packaging 304.14 304.14

Total Segment Capital 2862.90 2862.90

55
 CHAPTER NO-7

LIMITATIONS

LIMITATIONS OF THE STUDY

Marketing has continuous process in any company. Marketing alone can't build up brand

56
loyalty. Marketing is only supplementary devices to find the market for the product.
Likewise the researcher during the course of his research project training has to complete
his study under the following limitations: ~

TIME: The time constraints the research from being extensive and elaborate as in a though
task to complete the study in a vast area of NCR

FINANCE: The research being not a professional one was not adequately finance by the
company hence the researcher has to complete his study with limited finance.

HEAT: Excessive heat comes in the way of smooth functioning of the study.

BIASNESS: Biasness on account of respondent was the most complicated factor that
might have restricted the result from being accurate.

CHAPTER NO-8
57
 CONCLUSION

CONCLUSION
The discussion on impact of T.V. Advertisement on buying behavior is gaining ground in
every sector of India. In view of the literature survey the researcher believed firmly that
there is significant role of T. V. advertisement on the buying behavior of consumers. The
main objective of the present research work was to study the rural consumers satisfaction
level associated with products of selected FMCG companies of India. The rural consumers
view point on the traditional mechanism of services delivery, expectations level and
perception level regarding the FMCG products offered by the selected FMCG companies
of India had been studied. This study demonstrated the usefulness of the GAP Analysis as a
quality measure for FMCG Products. This analysis not only highlights areas for specific
action and also addresses shortcomings. The study of expectation and perception level of
rural consumers using FMCG products offered by the selected FMCG companies revealed,
inter-alia,
 That the overall non weighted (0.69) and overall weighted (9.31) GAP score both were in
positive zone meaning thereby that the rural consumers’ perceptions were more than their
expectations regarding FMCG products offered by the selected FMCG companies of India.
Rural consumers perceived the FMCG products provided to them were of good quality.

58
 That the respondents accorded maximum weight to Good Quality (16.80) closely
followed by Low Price (16.70) and Ethical Advertising (16.24) dimensions of FMCG
Products. Sales Promotion Schemes (15.19) ranked fourth closely followed by Product
Conclusion 206

Availability (14.46), Brand Name (11.60) and Brand Ambassador (9.36) was ranked lowest
in FMCG products dimensions. Meaning thereby, the rural consumers were more
concerned with Good Quality, Low Price and Ethical Advertising FMCG products as
compare to other dimensions of FMCG products offered by selected FMCG companies.
The rural consumers were ready to compromise on Sales Promotion Schemes, Product
Availability of the employees, Brand Name and Brand Ambassador offered by the sample
FMCG companies of India.

 that the overall dimension wise unweighted and weighted gap score in all of the
dimensions of FMCG products were found to have positive gap, implying that rural
consumers expectation regarding FMCG products dimensions were met by the selected
FMCG companies of India. Rural consumers were consistently more satisfied with Low
Price dimension [both in unweighted (0.85) and weighted (13.71) gap score] which was
ranked higher than all other FMCG product dimensions.

 that there was a significant correlation, both positive and negative, existing between most
of the dimensions of FMCG products offered by the selected FMCG companies of India.

 that the rural consumers rated the quality of FMCG products provided by Indian Tobacco
Company Limited (ITC) [both unweighted (0.46) and weighted (6.17) GAP score] were
above than their expectations and higher than the other FMCG companies. The Indian
Tobacco Company Limited (ITC) was also accorded the best Unweighted and Weighted
GAP score in all the seven dimensions of FMCG products offered.
Conclusion 207
It is pertinent to note that all the selected FMCG companies of India were providing
FMCG products at or above par than expected by their respective rural consumers.
However, the perception level of Indian Tobacco Company Limited (ITC) rural consumers
was significantly higher than the rural consumers of remaining the selected FMCG
companies of India.
Although all the selected FMCG companies of India were providing FMCG products at or
above par than expected by their customers. As quality improvement is a never ending
process, governing bodies of these FMCG companies should train personnel professionally,
upgrade information communication technologies and media channel to improve overall
rural customers’ experiences.
The results of the study indicated that the GAP scale could make a valuable contribution by
enhancing the understanding of the perceived quality of FMCG products in FMCG Sector
of India. The measurement scale also serves to identify symptoms and the underlying
problems that inhibit the effective provision of quality FMCG products in FMCG sector of
India.
A vital aspect of the present research was to analyze the level of influence of T. V.
advertisement on buying behaviour of rural consumers. While Comparing the awareness
level and purchase intension, both before telecast of T. V. advertisement and after telecast
59
of T. V. advertisement by the selected FMCG companies of India, it was revealed, inter-
alia, that in the case of overall awareness level after telecast of T. V. advertisement, the
overall mean value of all the selected FMCG companies had exceptionally increased i.e.
from 3.44 to 5.24. This showed that the rural consumers were more satisfied.
 that the rural consumer awareness level mean value of all the selected FMCG companies
of India had improved after telecast of T. V. advertisement. It was also clearly depicted that
the rural consumers of Indian Tobacco Company Limited (ITC) [by replacing Hindustan
Unilever Limited (HUL) (5.13)] were having high mean
Conclusion 208

score (5.46) after experiencing FMCG Products. It indicated that rural consumers of ITC
were more satisfied regarding overall awareness level.

 that in the case of purchase intension after telecast of T. V. advertisement, the overall
mean value of all the selected FMCG companies regarding purchase intension was
admirably increased i.e. from 3.41 to 4.86. This showed that there is a significant positive
impact of T.V. advertisement on purchase intension of rural consumers.

 that the individual purchase intension mean value of all the selected FMCG companies of
India had enhanced after telecast of T. V. advertisement. It was also revealed that the rural
consumers of Godrej Consumer Products Limited (GCPL) [by replacing Nestle India
Limited (NIL) (4.94)] were having high mean score (5.00) after telecast of T. V.
advertisement, which showed that the rural consumers of Godrej Consumer Products
Limited (GCPL) were more overall satisfied.

Apart from the above facts the significance value of both Paired Samples t-TEST [overall
awareness level (0.000) and purchase intension (0.000)] (Exhibit No. 16.0 & 17.0) strongly
confirmed that there was a significant positive influence of Telecast of T. V. Advertisement
on awareness level and purchase intension of rural consumers regarding products of
selected FMCG companies of India.
Correlation between T. V. Advertisement and Rural Consumer Satisfaction was an
important focus area of the study. It was observed that in the first case i.e. before watching
T. V. Advertisement, it was observed that significant positive correlations existed between
both the variables. Interestingly in the second case i.e. after watching T. V. Advertisement,
it was observed that the level of significant positive correlations has been increased
marginally between both the variables (Exhibit No. 46.0). Conclusion 209
The result reveled that there is vary marginal impact of T. V. Advertisement on overall
satisfaction level of rural consumers after watching T. V. Advertisement. In the context of
FMCG companies of India, it could be concluded that T. V. Advertisement may increase
the repurchase intention but consumer satisfaction level dependents upon characteristics of
purchased product.
A significant aspect of the present research was to analyze the reasons of structural gap
between the advertisers and sales management team. For this purpose, prominent reason
statements (CGI, 2004) had been identified by the various studies, included for the same.
The result pointed out, inter-alia,
 that the employees of the sample FMCG companies strongly believed that the statement ‘
Advertisement initiatives launched without a strategy’ was the major reason (mean 5.77) of
60
structural gap between the advertisers and sales management team.

 that the individual results of the selected FMCG companies employees responses
regarding ‘reasons of structural gap’ were diverse from overall results.

 that a significant relation existed between ‘statements related to structural gap’ of

Advertising initiatives and selected FMCG companies.

Hence, the top officials of the selected FMCG companies must take immediate steps to
control/eliminate all these factors considered as sources of structural gap between the
advertisers and sales management team.
A vital aspect of the present research was to evaluate factors relevant for effectiveness of
television advertisements for rural consumers. The foremost factors like Type of Product,
Entertainment, Brand Name, Language, Education Level of Audience, Reliable and
transparent information, Brand Ambassador, Transmission time, Target audience,
Programmes, Contextual Relevance and Broadcasting/Telecasting Quality, etc. had been
included in Conclusion 210
this study. The results firmly indicated, inter-alia,
that on the overall basis Type of Product (mean 4.10) was assigned first rank and
Broadcasting/Telecasting Quality (mean 8.87) was assigned last rank by the employees.
Meaning thereby that the employees strongly admitted that the Type of Product was the
most effective factor and Broadcasting/Telecasting Quality was the least relevant factor for
the effectiveness of television advertisement for rural customers.

that the results of inter comparison of the selected FMCG companies’ employees
responses regarding relevant factors related to effectiveness of television advertisements
for rural consumers were diverse from overall results.

 that a significant relation existed between relevant factors related to effectiveness of

television advertisements for rural consumers and selected FMCG companies.

Hence, the officials of the selected FMCG companies’ should take instant steps to consider
these relevant factors related to effectiveness of television advertisements for rural
consumers as sources of impetus to enhance the effectiveness level of advertising strategy.
A noteworthy aspect of the present research was to analyse the challenges faced by
advertising agencies while developing advertisement for rural consumers. Key challenges
faced by advertising agencies viz. Religion/Societal Customs, Education Level of Audience,
Generation/Age Group Gap, Transmission Cost, Festival Seasons Government
Regulations, Non availability of Infrastructure Support, Low Creative/Technical Skills, TV
Viewing Habits and Competitor Advertising Strategy etc. were incorporated in this regard.
The results firmly indicated, inter-alia, Conclusion 211

that on the overall basis Religion/Societal Customs was assigned first rank (mean 3.11)
meaning thereby that the employees considered it as major challenge faced by advertising
61
agencies while developing advertisement for rural consumers. While competitor advertisin
g strategy related factors (mean 8.11) were considered least important by the respective
employees..

that the individual results of the selected FMCG companies’ regarding challenges faced by
advertising agencies while developing advertisement for rural consumers were diverse
from overall results.

that a significant relation existed between factors related to customer retention process and
the selected FMCG companies except Government Regulations variable (ANOVA
Sig.=0.56).

Hence, the governing bodies of the selected FMCG companies should take instant steps to
manage all these factors considered as key advertising challenges.

The battle for customer satisfaction and retention has never been more intense.
Deregulation, diversification and globalization have stimulated a dramatic rise in

competition - and these unforgiving marketplace realities have forced FMCG companies of
India to switch from a product-centric approach to a customer-centric approach. In today’s
competitive business environment, customer retention by increasing the level of awareness
through efficient T.V. Advertising strategy, and by improving the quality of products is the
core focus of almost all the FMCG companies of India. Therefore, FMCG companies of
India are now focusing more on effective and efficient marketing strategy for rural
consumers. The integration of Advertising and Sales Management efforts to have synergy
effect is a challenging task. Technology alone cannot do this. The FMCG companies also
need to understand how they Conclusion 212

are going to fill these gaps. It is a journey. Any company committed towards customer
retention must continuously invest in its relationship with its customers because this is the
only competitive advantage remaining to an organization.

62
 CHAPTR NO. 9
RECOMMENDATIONS
&
SUGGESTIONS:

63
RECOMMENDATIONS & SUGGESTIONS:

The purpose of performance appraisal is to reward the employees, give them recognition,
and help them in career growth.
o The production managers or the personnel managers should interact more directly
with their subordinates and try to know their needs, their problems and help or
suggest them to overcome those difficulties.

o The feedback process should be made more sound and effective so that the
employees could know the areas where their performance is low so that they could
make it better in the future.

o Special training sessions should be organized besides regular training programmes

for low performance areas.

o There should be more transparency in awarding marks to the employees. It should

be effectively based on the merit and performance of the employees and not on the
basis of any personal contacts, blood relation or any affection.

o A small committee should be found that will keep a close watch on the whole
exercise and make ensure that it should be a fair process.

64
CHAPTER NO-10

ANNUXURE

65
 (A)Bibliography

BOOKS:
1. Kotler Philip and Keller; Marketing Management; PHI, New Delhi
2. Kotler, Philip, Kevin Keller, A. Koshy and M. Jha, Marketing Management in South
Asian Perspective , Pearson Education, New Delhi
3. Kerin, Hartley, Berkowtz and Rudelius, Marketing, TMH, New Delhi
4. Etzel, Michael J, Marketing: Concepts and Cases, TMH, New Delhi
5. Dhunna, Mukesh, Marketing Management – Text and cases

Website: www. itcportal.com

www.google.com

66
 (B)QUESTIONNAIRES

Name : ...............................................
Age :.................................................
Sex :
(l) Do you smoke?
Yes No

(2) Which Brand of cigarette you smoke?

ITC other

(3) If ITC then which ITC brand ?

Wills Gold Flak Other

(4) Why do prefer it ?

Adventism Attractive packaging
Easy availability Taste
Price Other

(5) How many times do you have smoke?

Once a day Twice a day
Once a week other
Suggestions:

---------------------------------------------------------------------

Signature

67