(TITLE OF THE PROJECT)

A project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor of Management Studies

Under the Faculty of Commerce

By

HARISH CHHOTU PASWAN

Under the guidance of

PROF. SHASHANK VARDHAN SINGH

SANPADA COLLEGE OF COMMERCE & TECHNOLOGY

SANPADA, NAVI MUMBAI- 400 705
APRIL-2019

SANPADA COLLEGE OF COMMERCE & TECHNOLOGY

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 Sector - 2, Behind Sanpada Railway Station Road,
Sanpada West,NaviMumbai – 400705.

Certificate
This is to certify that (Mr. HARISH CHHOTU PASWAN) has worked and duly
completed his project work for the degree of Bachelor of Management Studies under the
Faculty of Commerce in the subject of MARKETING MANAGEMENTand his/her
project is entitled, “(COMPLETE TOPIC NAME)” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and
that no part of it has been submitted previously for any Degree or Diploma of any
University.

It is his/her own work and facts reported by his/her personal findings and investigations.

Seal of Prof. SHASHANK.V.SINGH

the
College (Name & Signature of
Guiding Teacher)

Date of submission:

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 Declaration by learner

I the undersigned (Mr. HARISH CHHOTU PASWAN) hereby, declare that the work
embodied in the project work titled “(COMPLETE TOPIC NAME)”, forms my own
contribution to the research work carried out under the guidance of Prof SHASHANK
VARDHAN SINGH is a result of my own research work and has not been previously
submitted to any other University for any other Degree/Diploma to this or any other
University.

Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.

I, hereby further declare that all information of this document has obtained and presented in
accordance with academic rules and ethical conduct.

(HARISH CHHOTU PASWAN)

(Name & Signature of the learner)

Certified by

Prof. SHASHANK VARDHAN SINGH

(Name & Signature of the Guiding Teacher)

Acknowledgment

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To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal,Prof. RAOSAHEB SHINDEGALWEKAR for

providing the necessary facilities required for completion of this project.

I take this opportunity to thank our HOD Prof. MUSTAK DERAIYA, for his moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide Prof.
SHASHANK .V .SINGH whose guidance and care made the project successful.

I would like to thank my COLLEGE LIBRARY, for having provided various reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially MYPARENTS AND PEERS who supported me
throughout my project.

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 INDEX

CHAPTER TITLES PAGE NO.

NO.

1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 LITRERATURE REVIEW

4 DATA ANAYSIS &INTERPRETATION

5 CONCLUSION

6 SUGGESTIONS

7 BIBLIOGRAPHY / WEBLIOGRAPHY

8 APPENDIX

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 CHAPTER I

INTRODUCTION

The project given to us was related “To know the market share of Personal Care
Products and How to generate the demand?” The tasks were assigned to us on a weekly
basis like to survey/research about the products and their market position related to the
competitors products, also with an aim to know what grocery stores, chemist and cosmetics
outlet wanted and what consumer demands and how to generate the demand and other
various aspects.

As the products were new and it was yet to be marketed to a large number of customers,
it was essential to know the feedback of customers in order to formulate effective marketing
and sales strategies for future and improve the quality of service to achieve better consumer
satisfaction.

The market survey and interaction with the consumers made us possible to measure the
satisfaction of consumer by identifying the attributes, which gave consumers varying
degrees of satisfaction.

I have tried to know about the various sources where the ITC stand as a brand in its Personal
Care Products and the questionnaire was one of the ways to get the information etc. The
company offers many households’ brands like Fiama di wills, Vivel, and Superia etc. I have
mentioned about company’s background, product profile, limitations, findings which we
came across during the project and also the recommendations which can to improve the
position and selling of ITC’s Personal Care Products. Training with all the available
Distributors and under the guidance of Mr. Peeyush Gupta helped me to understand the
product and market which in turn helped to understand the stores and customers.

The problem which I faced while promoting the brand have been mentioned in detail in the
report. The remark they gave about the ITC are also mentioned in the report

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STATEMENT OF THE PROBLEM

STATEMENT OF THE PROBLEM

Broadly speaking this study has been under taken on a detail study, consisting of areas
covering the detail understanding of all the competitive brands of Personal Care Products.
In India, Personal Care Products market since past few years, is flooded with different
varieties of products of different companies. In such a situation the consumer is in dilemma
in preferring a particular product because different brands of Personal Care Products
amongst them.

With much competition of different companies producing similar products the study
is also aimed at those potential consumers of different brands and the other company’s
brands like Hindustan Unilever, Proctor & Gamble etc. The different factors have been
taken into consideration while ascertaining the consumer preference for Personal Care
Products.

SIGNIFICANCE OF THE STUDY:

Although this study is conducted at small level (only Bhopal and nearby) yet the
findings and suggestions of it will help the management of the organization i.e. ITC Ltd. in
better way to understand the detail study of areas covering all the aspects of Personal Care
Products it will also consist the detail understanding of the competitive brands of ITC’s
Personal Care Products. The study will also help the organization in making decision
regarding promotional schemes and also identified the hidden opportunity in the certain
areas. So the consumers find the product more attractive.

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OBJECTIVE OF THE STUDY
OBJECTIVE OF THE STUDY:
The main objective of the study to utilize my theoretical knowledge in realm of marketing
world to understand the complex or competitive market situations and gain experience with
the organization, where I utilize eight weeks time to understand the difference between
practical and theoretical knowledge.
The study has been conducted to understand the detail study of all the aspects of retailing
concerned with the ITC’s Personal Care Products.
This project will help the ITC Ltd. To implement necessary steps to improve the market
share especially in Bhopal. It will also help the organization to find out the loop holes.

THE MAIN OBJECTIVES OF THE PROJECT ARE:

• To research about the brand awareness of the Personal Care Products.
• To check the availability, visibility and category movement of ITC and its competitor
products.
• To know the impact of Retail Visibility on customers ultimate purchase intention.
• Understanding about the merchandizing system, visual merchandizing and display.
• To find out the problems faced by the retail/chemist/cosmetics outlets related to ITC
products.
• To study the position of the ITC products in relation to competitors product.
• To place the products where it had not been placed and to explore the new areas.
• To find out the various ways of generating demand.
• To look out the working of distributors and salesperson.
• To look out the distribution channel and supply chain and give possible suggestion
where ever possible.
• To know about the target customer’s of ITC’s personal Products.

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IMPORTANCE OF THE STUDY

IMPORTANT FOR THE STUDENT:

This course does not answer all the problems which arise in the practical field. There are
many certain formulas for analyzing particular problems, but the aim of the study is to
develop ability of decision making. A right decision at the right time itself helps the
organization to run efficiently. Therefore, the eight weeks training is most important for the
students of management.

Summer training in any organization gives an idea in taking tactfully right decision at
right time when problems come to an executive. So finding the solution of the problem,
right decision making and knowledge of different types of marketing activities gives much
more importance to the study.

IMPORTANT FOR THE COMPANY:

Though today’s market is very competitive for all type of consumables, but I find that
Personal Care Product market is more competitive market in a view that:

(1) It is daily consumable product,

(2) It is everybody’s requirement and
(3) Only reputed Brands are in the market.

Therefore, every seller of this product has uphill task wholesaling the products. In such a
market, it becomes highly imperative to take account of the constantly changing brand
perception.

It is here that this project becomes important as it aims to understand all the aspects
and the detail study of all the competitive brands of ITC’s Personal Care Product. The
observational study made during the training would help the marketing division of ITC to
devise effective market strategy for the given area that would ultimately help to strengthen
their position in the market, would enhance brand preference amongst the consumers.

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THEORETICAL PERSPECTIVE OF THE STUDY

Consumer is the sovereign in the market. All economies activity in the market namely,
production, distribution, exchange, consumption are governed, regulated and adjusted in
accordance with the needs and wishes of the consumers. Analysis of consumer behavior has
considerable importance in marketing management, with the changing in its philosophy. In
the early days these was basically sellers market, very few products concentrated in quality
and reasonable price structure, with the emergence of the competitors market started
flooding with goods and services, so each seller found it difficult to sell products if unable
to communicate the consumers in respect of products’ quality and reasonable price.

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COMPANY PROFILE

COMPANY PROFILE;

ITC is one of India's foremost private sector companies with a market capitalization of over
US $ 30 billion and a turnover of US $ 6 billion. ITC is rated among the World's Best Big
Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes
magazine, among India's Most Respected Companies by Business World and among India's
Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable
(Company) Brands', in a study conducted by Brand Finance and published by the Economic
Times. ITC also ranks among Asia's 50 best performing companies compiled by Business
Week.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.
While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels,
Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its
nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care
and Stationery.

As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a
commitment beyond the market". In his own words: "ITC believes that its aspiration to
create enduring value for the nation provides the motive force to sustain growing
shareholder value. ITC practices this philosophy by not only driving each of its businesses
towards international competitiveness but by also consciously contributing to enhancing the
competitiveness of the larger value chain of which it is a part."

ITC's diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched distribution
reach, superior brand-building capabilities, effective supply chain management and
acknowledged service skills in hoteliering. Over time, the strategic forays into new
businesses are expected to garner a significant share of these emerging high-growth markets
in India.

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

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides
IT services and solutions to leading global customers. ITC Infotech has carved a niche for
itself by addressing customer challenges through innovative IT solutions.

ITC's production facilities and hotels have won numerous national and international awards
for quality, productivity, safety and environment management systems. ITC was the first
company in India to voluntarily seek a corporate governance rating.

ITC employs over 26,000 people at more than 60 locations across India. The Company
continuously endeavors to enhance its wealth generating capabilities in a globalising
environment to consistently reward more than 4,09,000 shareholders, fulfill the aspirations
of its stakeholders and meet societal expectations. This over-arching vision of the company
is expressively captured in its corporate positioning statement: "Enduring Value. For the
Nation. For the Shareholder."

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 THE ITC WAY
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 systems.

ITC’s corporate strategies are:

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

that best matches organizational capability with opportunities in domestic and export
markets.

• Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.

• Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.

• Ensure that each of its businesses is world class and internationally competitive.

• Enhance the competitive power of the portfolio through synergies derived by

blending the diverse skills and capabilities residing in ITC’s various businesses.

• Create distributed leadership within the organization by nurturing talented and

focused top management teams for each of the businesses.

• Continuously strengthen and refine Corporate Governance processes and systems to

catalyse the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.

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 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, we are conscious that ITC has been given to us in "trust" by all
our stakeholders. We will actualize stakeholder value and interest on a long term sustainable
basis.

Customer Focus
We are always customer focused and will deliver what the customer needs in terms of value,
quality and satisfaction.

Respect for People

We are result oriented, setting high performance standards for ourselves as individuals and
teams.
We will simultaneously respect and value people and uphold humanness and human dignity.
We acknowledge that every individual brings different perspectives and capabilities to the
team and that a strong team is founded on a variety of perspectives.
We want individuals to dream, value differences, create and experiment in pursuit of
opportunities and achieve leadership through teamwork.

Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.

Innovation
We will constantly pursue newer and better processes, products, services and management
practices.

Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit of
our goals, we will make no compromise in complying with applicable laws and regulations
at all levels.

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PRODUCT PROFILE

PRODUCT PROFILE

In line with ITC's aspiration to be India's premier FMCG company, recognized for its world-
class quality and enduring consumer trust, ITC forayed into the Personal Care business in
July 2005. In the short period since its entry, ITC has already launched an array of brands,
each of which offers a unique and superior value proposition to discerning consumers.
Anchored on extensive consumer research and product development, ITC's personal care
portfolio brings world-class products with clearly differentiated benefits to quality-seeking
consumers.

ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel
UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and
is being progressively extended nationally.

ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and

benchmarked manufacturing practices. Contemporary technology and the latest
manufacturing processes have combined to produce distinctly superior products which rank
high on quality and consumer appeal.

Extensive insights gained by ITC through its numerous consumer engagements have
provided the platform for its R&D and Product Development teams to develop superior,
differentiated products that meet the consumer's stated and innate needs. The product
formulations use internationally recognized safe ingredients, subjected to the highest
standards of safety and performance.

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FIAMA DI WILLS

In September 2007, ITC launched Fiama Di Wills, a premium range of personal care
products comprising shampoos, conditioner, shower gels and bathing bar. The Fiama Di
Wills range combines the goodness of nature and science, providing gentle and effective
care. The Fiama Di Wills product portfolio has been developed by scientists at the ITC
R&D Centre, leveraging the expertise of International product formulation specialists. The
fragrances, aesthetics and packaging have been developed in collaboration with European
specialists.

Fiama Di Wills products are targeted at the young, modern, aware customers who are
confident of themselves and seek indulgences that make them feel alive and beautiful. The
range combines exotic naturals like Sage, Watercress, Magnolia blossoms and the best of
contemporary science like Hydro Restorative System and Cuticle Restore Technology to
make the consumer feel beautiful, today, tomorrow.

Fiama Di Wills Shampoos developed in collaboration with Cosmetech Labs Inc., USA,
offer a range of five variants. Each of these is designed to deliver a specific hair benefit to
the consumer :

• Everyday Mild (with extracts of Thyme & Juniper) is a gentle caring shampoo
suitable for regular use.
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• Aqua Balance (with extracts of Magnolia Blossoms & Watercress) is a gentle
moisturizing shampoo ideal for dry, dull hair.
• Volume Boost (with extracts of Rosemary & Sage) is a gentle volumizing shampoo
ideal for thin, limp hair.
• Silky Strong (with oils of Macadamia Nut and Babassu) helps make hair smooth,
silky and strong and is ideal for weak, damaged hair.
• Shine in Style (with extracts of Chamomile and Green Tea) makes hair shiny and
manageable, easy to style and is ideal for dull to normal hair.

Each of these shampoos can be complemented with Fiama Di Wills

Polishing Drops conditioner. This gentle conditioner enriched with Avocado Oil and
Burdock extract promises to make hair shiny, soft and smooth. It also gives the additional
benefits of UV protection as it contains Sunflower Seed extract, which is a natural UV
absorber.

Launched in September 2010, the Fiama Di Wills Anti-Hairfall Shampoo

is unique as it offers consumers the goodness of Brazil Nut, found in the
Amazon Forests and the effectiveness of science with the Hair restore
Technology. Brazil Nut, is known to seal in hair moisture giving it shine
and a silky smooth texture. It also helps renew dry and lifeless hair. The
Hair Restore Technology, developed at the ITC R&D Centre, helps repair
cuticles and restore the protective lipid layer to reduce further damage. This
strengthens hair and reduces hair fall due to breakage. The Anti-hairfall
Conditioner also enriched with Brazil Nut extracts and the hair restore
technology gives best results when used with Fiama Di Wills Anti-Hairfall Shampoo.

The Fiama Di Wills product line also consists of a 3-variant range of transparent shower
gels which are unique as they come with suspended beads:

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• Mild Dew (contains soft beads, extracts of peach and avocado) is for soft, moisturized
skin.

• Clear Springs (contains jojoba beads, extracts of sea weed and lemongrass) is for
clear, healthy, smoother skin.

• Exotic Dream (contains glitter beads, extracts of

bearberry leaves and black currant) is for stimulating
freshness.

Fiama
Di Wills has expanded its range of personal care products by
introducing Aqua Pulse shower gel, exclusively for men. The
shower gel contains extracts of exotic naturals like sea minerals
and blue lotus. This blue transparent shower gel refreshes and keeps skin healthy.

The Fiama Di Wills range of bathing bars has been launched under the sub - brand
SkinSense. The first variant to be introduced in this range is Soft Green. This is a gentle
caring bathing bar, that helps enhance retention of skin proteins giving 6 pro care. Protein
keeps skin moisturised, supple, youthful, even toned, radiant and smooth.

Fiama Di Wills recently launched a range of transparent gel bathing bars. A first of its kind,
a transparent liquid gel has been solidified into a bathing bar so that consumers get a superior
bathing experience. The shower gel in a bathing bar format which has been crafted through
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a unique and patented freezing technology. Backed by deep consumer insights, this
proprietary gel bathing bar is a result of years of extensive research and development by the
scientists at the ITC R&D Centre.

Uniquely crafted, these Gel Bathing Bars are shaped like dew drops, have a transparent look,
rich creamy lather, and a great long-lasting fragrance. These bathing bars are
dermatologically tested and proven mild and contain the goodness of natural exotic extracts
like Peaches, Avocadoes, Sea Weed and lemongrass. Launched in two variants that offer
specific different skin benefits, are:

Mild Dew - Contains extracts of peach and avocado which moisturise the skin.

Clear Springs - Contains extracts of lemongrass & sea weed which gives Clear skin.

The Fiama Di Wills transparent Gel Bathing Bars are available at an attractive price of
Rs. 25 for 110 grams. This differentiated range of bathing bars offers the consumer a
delightful bathing experience.

The latest launch, the Fiama Di Wills Aqua Pulse Bathing Bar, crafted
exclusively for men, gives an invigorating and rejuvenating fragrance and
freshness. Its composition with Sea Minerals, Blue lotus and the Active
Defense Complex gives a fresh and healthy skin.

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VIVEL

Between February and June 2008, ITC expanded its personal care portfolio with the launch
of Vivel range of soaps and shampoos to cater to the specific needs of a wide range of
consumers.

This high quality range of soaps and shampoos are for the upper-mid and mid-market
consumer segments. All products offer a unique value proposition of bringing together
ingredients that provide the benefit of Nourishment, Protection and moisturization through
one product, hence providing the ever discerning consumer complete care, which makes her
beautiful and confident.

The Vivel range of soaps is available in five variants:-

• Vivel Young Glow is enriched with Vitamin E and Fruit Infusions which help in
providing youthful glow to the skin.
• Vivel Satin Soft is enriched with Vitamin E and Aloe Vera which help the skin feel
beautifully soft.
• Vivel Sandal Sparkle is enriched with Sandalwood Oil and Active Clay which helps
in providing clear skin.
• Vivel Ayurveda Essence is enriched with multiple Ayurvedic Ingredients which help
protect skin from germs and harsh environment, keeping it healthy and beautiful.
• Vivel Silk Spring is enriched with Green Apple extracts and Olive oil which help in
making skin smooth.

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The portfolio was further expanded with the launch Vivel Milk Cream and Glycerine
bathing bar in January 2010. This is creamy and luxurious bathing bar is enriched with the
goodness of double moisturising ingredients of milk cream and glycerine. Glycerine
penetrates deep into the skin and moisturises while milk cream locks in the moisture to leave
the skin feeling soft and smooth. It is packed in a premium carton and has an extremely
alluring fragrance.

Launched in May 2010, Vivel Deo Spirit Soap is targeted at the young, modern,
experimental, vivacious and trendy youth. The new variant made from exotic ingredients
like Kiwi Fruit, known to condition the skin and Eucalyptus Oil with anti-bacterial
properties, ensures a long lasting fragrance that refreshes the skin and leaves one
rejuvenated for hours after every wash.

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ITC forayed into the skin cream category with the launch of Vivel Active Fair in July 2010.
Vivel Active Fair locks in fairness ingredients to deliver faster and longer-lasting fairness.
This fairness cream helps the skin from the inside as well as the outside, thereby delivering
visible results in just 7 days. Additionally, Vivel Active Fair is enriched with vitamins,
minerals and moisturizers that provide total care to the skin. The cream has SPF 15 sun
protection rating. The cream is suitable for all skin types.

The Vivel range of shampoos is available in three variants:-

• Vivel Shine & Glow is suitable for dull to normal hair and is enriched with Green
Tea Extract and Conditioners. It adds shine to hair.
• Vivel Soft & Fresh is suitable for dry to normal hair and contains Extra Conditioners
and Soya Protein. It makes hair soft and fragrant.
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 • Vivel Volume & Bounce is suitable for oily to normal hair and contains Jojoba Oil
and Conditioners. It adds volume and bounce to hair.

The product portfolio was further enhanced with the launch of Ultrapro anti-dandruff
shampoo under the umbrella brand Vivel in December 2008. Ultrapro promises to fight
dandruff twice as effectively while also providing care for hair through the plus plus benefits
of Nourishment and Moisturisation.

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SUPERIA

The Superia range of soaps and shampoos have been launched to cater to the large popular
market in the personal care category. The products under the Superia brand are made from
scientifically developed formulations enriched with natural ingredients that have
traditionally been known to be good for the skin and hair.

The range offers consumers access to some of the best-in-class products in vibrant attractive
packaging.

Superia Soaps enriched with natural ingredients give radiant glowing skin. Superia Soaps
are available in four variants :

1. Fragrant Flower: with the fragrance of Rose & Lavender Oil

2. Soft Sandal: with the fragrance of Sandal & Almond Oil

3. Natural Glow: with Neem & Coconut Oils

4. Healthy Glow: with Orange Oil

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Superia Lemon Fresh & Milky Glow Soaps
Superia added two new soap variants to enhance its product portfolio. Superia Lemon Fresh
with its lime extracts, mint oil and germ fighters keeps skin fresh, fragrant and glowing.
Superia Milky Glow with the goodness of milk protein, saffron oil and the essence of
jasmine, keeps skin soft and radiant.

Superia shampoos with triple conditioners and natural ingredients bring a natural shine to
hair. Superia shampoos are available in two variants:

Shiny Black with Triple Conditioners and the natural goodness of Hibiscus & Brahmi
extracts.
Vibrant Green with Triple Conditioners and the natural goodness of Amla & Arnica
extracts.

Another addition to the Superia shampoo portfolio, Superia Maxi Protect Active Health
shampoo contains Dandruff Fighter along with Vitamins & Soya Protein. It fights multiple
types of dandruff causing germs and leaves hair & scalp feeling clean & healthy.

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26 | P a g e
RURAL INITIATIVES TAKEN BY THE COMPANY

ITC's Agri-Business is India's second largest exporter of agricultural products. ITC is one of the
India's biggest foreign exchange earners (US $ 2 billion in the last decade). The Company's 'E-
Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by
empowering Indian farmers through the power of the Internet. This transformational strategy, which has
already become the subject matter of a case study at Harvard Business School, is expected to
progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the
Company's marketing reach.

The company places computers with Internet access in rural farming villages; the E-Choupals serve as
both a social gathering place for exchange of information (Choupal means gathering place in Hindi)
and an e-commerce hub. What began as an effort to re-engineer the procurement process for soy,
tobacco, wheat, shrimp, and other cropping systems in rural India has also created a highly profitable
distribution and product design channel for the company—an e-commerce platform that is also a low-
cost fulfilment system focused on the needs of rural India. The E-Choupal system has also catalyzed
rural transformation that is helping to alleviate rural isolation, create more transparency for farmers,
and improve their productivity and incomes.

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CORPORATE PHILANTHROPY

ITC E-Choupal creatively leverages information technology to set up a meta-market in favour of

India's small and poor farmers, who would otherwise continue to operate and transact in 'un-evolved'
markets.

As of July 2010, services through 6500 E-Choupal across 10 states, reach more than 4 million farmers
in about 40,000 villages. Free access to Internet is also opening windows of rural India to the world at
large.

ITC E-Choupal is now being regarded as a reliable delivery mechanism for resource development
initiatives. Its potential is being tested through pilot projects in healthcare, educational services, water
management and cattle health management with the help of several service providers including non-
governmental organizations.

Classmate notebooks were launched with the initiative of contributing 1 rupee towards the education
of poor children, from every four notebooks it sold.

Classmate, has launched a programme called Classmate Ideas for India challenge. The programme
would be a part of the company's centenary initiative. The nation-wide programme would invite ideas
of the youth, who have the potential to transform India. Classmate Ideas for India challenge plans to
reach out to 25 lakh students across 30 cities, 500 schools and 200 colleges across the country.

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COMPETITORS OF ITC LTD.

Industries Where ITC Limited Competes

• Tobacco Product Manufacturing
• Crop Production
• Information Technology Services
• Consumer Products Manufacturing
• Apparel Manufacturing
Main Competitors of ITC Itd.:
► Hindustan Unilever
► Golden Tobacco Ltd.
► Godfrey Philips India Ltd.
► RTCL Ltd.
► VST Industries Ltd.
► Marico Ltd.

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 CHAPTER II

RESEARCH METHODOLOGY

Research Type

My research is based on the primary data. Primary data has been used to understand the
scope of stationery business in India and then to make suggestions useful for the company
under study i.e. ITC Classmate.

Data Type

Primary data has been used for the purpose of study of Understanding the strategy &
requirements for ITC Stationery supplies, for penetrating ITC offers into Institutions'.

Sample Selection

To collect primary data regarding the scope of stationery business of ITC Classmate, I had
to visit educational institutes over a period of one month. The list of the institutes was
given by my mentor. I had a few questions for the institutions I visited. At the same time, I
also enquired about stationery they are currently using and if they were interested in taking
stationery from ITC Classmate. In the next phase, I visited Stationery Retail stores to
observe the supply chain maintained by the company. I had a set of Questionnaire for the
shops. I even asked the shopkeepers about the supply chain maintained by the competitors
of ITC Classmate. I visited the shops with the TSI (Territory Sales In-Charge) of the
company.

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Data Collection Method

In order to collect the primary data, the method used was personal interview of the person
in-charge of the stationery of schools. A questionnaire was prepared in order to collect the
data a sample of which is attached in the report.

Apart from talking to the person in-charge of the stationery of schools, an interaction with
the staff members and the shopkeepers at the Stationery Retail Store gave an overview of
the performance of the company on the individual level. This helped to look at the retail
business from different perspectives and better suggestion could be given to the company
under study to improve upon the same.

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Tools Used for Data Analysis

As no study could be successfully completed without proper tools and techniques, same
was with my project. For the better presentation and right explanation I used tools of
statistics and computer very frequently. And I am very thankful to all those tools for
helping me a lot. Basic tools which I used for project from statistics are
• Bar Charts
• Pie-Chart
• Tables
Bar chaits and Pie-Charts proved really useful tools to show the result in a well clear, ease
and simple
way. Because I used bar charts in project for showing data in a systematic way, so it need
not necessary for any observer to read all the theoretical detail, simple on seeing the charts
anybody could know that what is being said.

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THE STUDY

PHASE 1: The following study is based on our finding through various

institutions I visited.

Here, I visited various institutions which include schools and colleges in order to gain
information about the stationery they use. Identifying the scope of Classmate during
Summer Camps in Schools, I visited the school regarding that also. This was done
thoroughly in order to understand about scope of ITC Classmate to generate leads in those
Institutions, before this I was given a thorough overview of different products of ITC
Classmate.

SCHOOLS

GENERAL INFORMATION ABOUT SCHOOLS

o Total No. of Schools visited: 15

o No. of students in those schools ranges from 600 to 3600.
o Academic Session of schools starts from: April
o Tuck Shop:

33

60

No. of Schools having Tuck Shop = 9 No. of Schools which have any Tuck Shop = 5 Did not disclose
33any
|P age
information=1
REMARKS

1. The database of schools is old; they should be maintained as many new schools are
coming up and they might need stationery.
2. Most schools told to contact in the month of August and September when they decide
the place of buying stationery.

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 SUMMER CAMPS

SCHOOLS VISITED

NORTH:

• North point day school

• Auxilium Convent
• DCS High School
• Our Lady Queen of Mission
• CA English Medium High School
• Calcutta Public School
• Loretto Day School
• Mother International
• Adamas International
• Apeejay Salt Lake
• Central Modern School
• Aditya academy

SOUTH:

• Heritage School
• The Good Shepard School
• South City International
• Lakshmipat Singhania Academy
• Gokhale Memorial Girls Higher Secondary School
• MP Birla High School

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Total number of schools visited:- 18

1st Qtr Total school from South = 6

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SUMMER CAMPS IN SCHOOL

ACTIVITIES DURING SUMMER CAMP

On visit to these schools I found out that different activities happen during summer camp.
Some of
them are:
o Excursion camps
o Drawing competition
o Dance competition
o Essay writing
o Different games like Cricket, Football
o Crafting

OTHER INFORMATION:
o I found out that in most of the schools summer camps take place after 10 of May.
The peak period being from 14 may to 21" may

o The Products used in these activities are Pen, Pencils, Rubber, Eraser, Drawing
Books, Scrap Books, Colors.

o On asking whether ITC can put a stall only one school out of 7 agreed and others
did not want to disclose unless they get a hard copy of proposal from ITC.

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REMARKS

o I noticed that most of the schools do organize summer camps but this time they are
not doing so due to hot weather.

o ITC should target schools for summer camp in the month of April because most of
the schools decide their summer camps' period, sponsors during that period.

o Most of the Schools organize summer camps on a very low scale.

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 BUSINESS SCHOOLS AND ENGINEERING COLLEGES

BUSINESS SCHOOLS AND ENGINEERING COLLEGES I COVERED:

o Pioneer college of Management

o Meredian school of Hotel Management

o School of Management and Information Technology

o Alchemy Leadership School

o Indian Institute of Software Technology

o Razabazar Science College

o Bhartiya Vidya Bhavan of Management science

o Indian Institute of Technology

o Asia Pacific School of Hotel Management

o Army Institute of Management

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REMARKS AND FINDINGS

o I found out that most of the institute don't have tuck shop.

o Institute generally provided only text books. Notebooks and other stationery
products are on students' own choice.

o The ones which have a tuck shop, already ITC Classmate products were there along
with other brands like Pioneer, Shiea, Lokenath.

o Most of the institute who get their office stationery from local vendor showed their
interest and took price list from us.

o There was some institute which already placed their orders so asked us to contact
coming year in the month of March or April.

o There were some institutes which were kind enough to give us their suppliers name
and same was been intimated to our mentor.

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PHASE 2: Working with the TSI

In this phase, I visited Stationery Retail stores and gather information about stocks and
problems faced by stores. My basic objective was to find out if the distribution can be
made better. In this survey I had to visit stationery shops with the ITC classmate TSI
(Territory Sales In charge).
I worked with the following TSI (Territory Sales In-charge):
• Mahadev Naskar,
• Raja Mondal, and
• Dilip Kundu

o No. of TSE I worked with: 3

o I worked over a span of 20 days.

o Covered shops in places like:

• Ballygaunge, Gari ahat, Jadavpur, Tollygaunge, Beliaghata, Phoolbagan,
Park Circus, Beckha gan.

o Total No. of Shops Covered: 62

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 CHAPTER III

LITERATURE REVIEW

BALANCED SCORECARD
What is the Balanced Scorecard?

The Balanced Scorecard is a performance management tool that enables a company to

translate its vision and strategy into a tangible set of performance measures. However, it is
more than a measuring device. The scorecard provides an enterprise view of an organisation's
overall performance by integrating financial measures with other key performance indicators
around customer perspectives, internal business processes, and organisational growth, learning,
and innovation. Kaplan and Norton describe the innovation of the balanced scorecard as
follows: "The balanced scorecard retains traditional financial measures. But financial measures
tell the story of past events, an adequate story for industrial age companies for which
investments in long-term capabilities and customer relationships were not critical for success.
These financial measures are inadequate, however, for guiding and evaluating the journey that
information age companies must make to create future value through investment in customers,
suppliers, employees, processes, technology, and innovation.‖[1]

According to Kaplan and Norton (1996), ―The Balanced Scorecard provides managers
with the instrumentation they need to navigate to future competitive success‖ [1]
. Many books
and articles referring to Balanced Scorecards confuse the design process elements and the
Balanced Scorecard itself. In particular, it is common for people to refer to a ―strategic
linkage model‖ or ―strategy map‖ as being a Balanced Scorecard. Although it helps focus
managers' attention on strategic issues and the management of the implementation of strategy,
it is important to remember that the Balanced Scorecard itself has no role in the formation of
strategy. In fact, Balanced Scorecards can comfortably co-exist with strategic planning systems
and other tools.

The grouping of performance measures in general categories (perspectives) is seen to aid

in the gathering and selection of the appropriate performance measures for the enterprise. Four
general perspectives have been proposed by the Balanced Scorecard:
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1) Financial perspective
2) Customer perspective
3) Internal process perspective
4) Innovation and learning perspective

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Financial Perspective

The financial perspective addresses the question of how shareholders view the firm and
which financial goals are desired from the shareholder's perspective. The specific goals depend
on the company's stage in the business life cycle.

Customer Perspective

The customer perspective addresses the question of how the firm is viewed by its
customers and how well the firm is serving its targeted customers in order to meet the financial
objectives. Generally, customers view the firm in terms of time, quality, performance, and cost.
Most customer objectives fall into one of those four categories.

Internal Process Perspective

Internal business process objectives address the question of which processes are most
critical for satisfying customers and shareholders. These are the processes in which the firm
must concentrate its efforts to excel.

Learning and Growth Perspective

Learning and growth metrics address the question of how the firm must learn, improve,
and innovate in order to meet its objectives. Much of this perspective is employee- centred.

Cause-and-Effect Relationships

The Balanced Scorecard relies on the concept of Strategy developed by Michael Porter
[1]
. Porter argues that the essence of formulating a competitive strategy lies in relating a
company to the competitive forces in the industry in which it competes. The scorecard
translates the vision and strategy of a business unit into objectives and measures in four
different areas: the financial, customer, internal business process and learning and growth
perspective. The financial perspective identifies how the company wishes to be viewed by its
shareholders. The customer perspective determines how the company wishes to be viewed by

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its customers. The internal business process perspective describes the business processes at
which the company has to be particularly adept in order to satisfy its shareholders and
customers. The organisational learning and growth perspective involves the changes and
improvements which the company needs to realize if it is to make its vision come true.

A strategy is a set of hypotheses about cause and effect. The measurement system
should make the relationships (hypotheses) among objectives (and measures) in the various
perspectives explicit, so that they can be managed and validated. The chain of cause and effect
should pervade all four perspectives of a BSC [1]. For example, the strategy of an engineering
company could be to perform consultancy besides the regular work because it provides a higher
return. Return-on-capital-employed (ROCE) may be a scorecard measure in the financial
perspective. The driver of this measure could be expanded sales to new and existing customers
as a result of a high degree of loyalty among those customers. Thus, new customers and
customer loyalty is included on the scorecard in the customer perspective because it is expected
to have a strong influence on ROCE. A market analysis may have revealed that there is a need
for consultancy. In this case, providing consultancy is expected to lead to new customers and
higher customer loyalty, which, in turn, is expected to lead to higher financial performance. So
new customers, customer loyalty and consultancy (which could be measured by the number of
consultancy projects that has been carried out) are incorporated into the customer perspective
of the scorecard.

The process continues by asking which internal processes for the engineering company
are necessary in order to practice consultancy. To achieve this, the business may need new
quality consultancy products. The new products must first be developed and afterwards tested
on quality. Developed consultancy products and process quality on consultancy products are
factors that could be scorecard measures in the internal perspective. The engineering company
can develop consultancy products by training its operating employees in the required skills. If
the company also engages experienced consultants, this will shorten the development time of
the consultancy products. These experienced consultants can act as mentor for the trained
employees. Experienced consultants and trained employees for consultancy are objectives that
would be candidates for the learning and growth perspective.

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 Because Kaplan and Norton assume the following causal relationship: measures of
organisational learning and growth -measures of internal business processes - measures of the
customer perspective - financial measures, the measures of organisational learning and growth
are therefore the drivers of the measures of the internal business processes. The measures of
these processes are in turn the drivers of the measures of the customer perspective, while these
measures are the drivers of the financial measures. According to Kaplan and Norton a good
balanced scorecard should have an appropriate mix of outcomes (lagging indicators) and
performance drivers (leading indicators of the business unit‘s strategy [1].

Key Performance Indicators

Metrics used in the BSC are typically called Key Performance Indicators (KPIs)
because they measure how well the organisation performs against predefined goals and targets.
There are two major types of KPIs: leading and lagging indicators. Leading indicators measure
activities that have a significant effect on future performance, whereas lagging indicators, such
as most financial metrics, measure the output of past activity. Leading indicators are powerful
measures because it gives managers more time to influence the outcome.

BSC Usage in Small Medium Sized Enterprises

Nowadays, many large companies use a performance measurement system like the BSC
but many smaller companies have no performance measurement system. In a recent study
Sousa et al. indicate that the SMEs surveyed, recognise the importance of performance and a
performance measurement system but their level of use was significantly lower [2]. Speckbacher
et al. found a significant association of size (measured as the number of employees) and BSC
usage; larger companies are more likely to have implemented a BSC [3]. However, the examined
companies are large and not small or medium sized organisations. Neely et al. pointed out that
measurement is a luxury for SMEs. They concluded that the cost of measurement is an
[4]
important issue to managers in SMEs . Also, nowadays most SMEs use an information
system by which data for measures can easily be obtained, but the costs of implementing and
purchasing a scorecard system can still be an issue to managers.

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Types of Balanced Scorecard

Speckbacher, Bischof and Pfeiffer found in their large-scale research with high response
under German companies quoted on the stock exchange a high support for ambivalence in the
BSC concept [3]. They defined three types of BSCs:

5) Type I BSC: a specific multidimensional framework for strategic performance

measurement that combines financial and non-financial strategic measures.
6) Type II BSC: a Type I BSC that additionally describes strategy by using cause-and-
effect relationships.
7) Type III BSC: a Type II BSC that also implements strategy by defining objectives,
action plans, results and connecting incentives with BSC.

50% of the examined companies that use the BSC appeared to work with a type I BSC,
21% with a type II BSC and 29% with a type III BSC. Only the companies that use type III
BSC are in position to fully benefit of the BSC as a performance management system that
bridges the gap between strategic plans and real activities. However, linking the reward system
[1]
to the BSC has some risks . The question arises whether or not measures on the BSC are
right. Are the data for the selected measures reliable? Could there be unintended or unexpected
consequences in how the targets for the measures are achieved? Despite the risks of linking the
reward system to BSC, it seems reasonable to assume that companies are able to steer the
organisation according to the strategy (described by BSC measures and cause- and-effect
chains) if they reward managers on the basis of BSC measures [5]. The study of Speckbacher et
al. shows that companies implementing a more developed BSC (particularly Type III) rely
more on the BSC approach and are more satisfied with their BSC than those with a less
developed BSC.

In the majority of organisations, the implementation of the BSC is a difficult process. The
types defined can be interpreted as three typical evolutional steps in the process of BSC
implementation [3]. Half of the companies that use the BSC were not able to obtain cause-and-
effect relationships. One reason for this could be that those companies have only recently
started the process of implementation. It is also likely that a large number of the companies,
that are using the type I BSC, might find it too difficult to obtain cause-and-effect relationships.

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The Process of Building a Balanced Scorecard

While there are many ways to develop a Balanced Scorecard, Kaplan and Norton defined
a four-step process that has been used across a wide range of organizations.

1. Define the measurement architecture - When a company initially introduces the

Balanced Scorecard, it is more manageable to apply it on the strategic business unit
level rather than the corporate level. However, interactions must be considered in
order to avoid optimizing the results of one business unit at the expense of others.
2. Specify strategic objectives - The top three or four objectives for each perspective are
agreed upon. Potential measures are identified for each objective.
3. Choose strategic measures - Measures that are closely related to the actual
performance drivers are selected for evaluating the progress made toward achieving
the objectives.
4. Develop the implementation plan - Target values are assigned to the measures. An
information system is developed to link the top level metrics to lower-level
operational measures. The scorecard is integrated into the management system.

Conditions for Implementing the Balanced Scorecard

Nowhere in their books and articles do Kaplan and Norton describe the conditions an
organisation must in order to be able to apply the Balanced scorecard. The way they describe
organisations that applied the BSC in numerous examples suggests that this method is
universally applicable.

According to Kaplan and Norton, the Balanced Scorecard enables companies to modify
strategies. Companies in a highly dynamic environment have to change their strategy
constantly, which, leads to frequently changing the measures in the BSC. In general, it is
difficult for an organisation to establish performance measures for activities with which the
organisation has very little or no experience. Therefore, as measuring effects is particularly
difficult in companies which constantly have to adapt to new situations, the BSC is not
applicable for companies in highly dynamic environments.

Implementing Balanced Scorecards typically includes four processes:

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1. Translating the vision into operational goals;

2. Communicating the vision and link it to individual performance;

3. Business planning;

4. Feedback and learning, and adjusting the strategy accordingly.

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Learning and Growth Perspective

The Learning & Growth Perspective focuses on the intangible assets of an organization,
mainly on the internal skills and capabilities of the employees that are required to support the
value-creating internal processes. The Learning & Growth Perspective focuses on:

a) Human Capital-Jobs and people issues

b) Information Capital- Systems and technology issues
c) Organization capital- Organizational climate and quality of work-life

The Learning and Growth objectives describe how the people, technology, and
organizational climate combine to support strategy. Measures in this perspective are lead
indicators for improvements in the internal processes, customer and financial perspectives. The
diversity learning and growth perspective reflects a statistical summary of the organization‘s
ability to maintain and enhance the capability of its diverse intellectual assets. It includes
priorities to create a climate that supports organizational change, innovation, and growth. It
enables the organization to ensure its capacity for long-term renewal by effectively developing
and utilizing its diverse workforce for improved performance, a prerequisite for survival in the
long run. In this perspective the organization should consider not only what it must do to
maintain and develop the know-how required for understanding and utilizing its diverse
workforce, but also determining what‘s needed to build a long-term sustaining infrastructure
to enhance its core competency base.

By doing so, the organization will be in a much better strategic position to satisfy its
employee and customer needs as well as to sustain the necessary efficiency and productivity of
its processes, which create financial value. Intense global competition requires that
organizations continually improve their capabilities for delivering value to customers and
share- holders. Organizational learning and growth come from three principal sources: people,
systems, and organizational procedures. Scorecards typically reveal large gaps between the
existing capabilities of people, systems, and procedures and what is required to

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achieve breakthrough performance. To close these gaps, businesses have to invest in re- skilling
employees, enhancing information technology and systems, and aligning organizational
procedures and routines.

An innovative idea or core competency skill level does not have a race, color, creed, or
specific ethnicity. It simply reflects someone with this level of competency or skill. Depending
on the organization‘s ability to manage diversity and to create an environment where people
can do their absolute personal best work, employees will either stay or leave. The degree to
which the organization is willing to invest in all employees through its training, career planning,
mentoring, and succession planning efforts to build core capabilities and the like will heavily
influence the employee‘s perception of the workplace and the organization‘s ability to meet its
competitive challenges.

This perspective includes employee training and corporate cultural attitudes related to both
individual and corporate self-improvement. In a knowledge-worker organization, people
-- the only repository of knowledge -- are the main resource. In the current climate of rapid
technological change, it is becoming necessary for knowledge workers to be in a continuous
learning mode. Metrics can be put into place to guide managers in focusing training funds
where they can help the most. In any case, learning and growth constitute the essential
foundation for success of any knowledge-worker organization.

Kaplan and Norton emphasize that 'learning' is more than 'training'; it also includes things
like mentors and tutors within the organization, as well as that ease of communication among
workers that allows them to readily get help on a problem when it is needed. It also includes
technological tools; what the Baldrige criteria call "high performance work systems."

The customer-based and internal business process measures on the balanced scorecard
identify the parameters that the company considers most important for competitive success.
But the targets for success keep changing. Intense global competition requires that companies
make continual improvements to their existing products and processes and have the ability to
introduce entirely new products with expanded capabilities. A company's ability to innovate,
improve, and learn ties directly to the company's value. That is, only through the ability to
launch new products, create more value for customers, and improve operating efficiencies
continually can a company penetrate new markets and increase revenues and margins – in short,
grow and thereby increase shareholder value.
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 An effective strategic learning process has three essential ingredients:

1. A shared strategic framework that communicates the strategy and allows each
participant to see how his or her activities contribute to achievement of the overall
strategy;
2. A feedback process that collects performance data about the strategy and allows the
hypotheses about interrelationships among strategic objectives and initiatives to be
tested: and
3. A team problem-solving process that analyzes and learns from the performance data
and then adapts the strategy to emerging conditions and issues.

The learning and growth perspective on the balanced scorecard develops objectives and
measures to drive organizational learning and growth. The objectives established in the
learning and growth perspective provide the infrastructure to enable ambitious objectives in the
other three perspectives to be achieved. Objectives in the learning and growth perspective are
the drivers for achieving excellent outcomes in the first three scorecard perspectives. The
Balanced Scorecard stresses the importance of investing for the future, and not just in
traditional areas for investment, such as new equipment and new product research and
development.

There are three principal categories for the learning and growth perspective:

1. Employee Capabilities
2. Information System Capabilities
3. Motivation, empowerment and alignment

Employee Capabilities

Core Employee Measurement Group

The three core employee measurements are:

1. Employee retention
2. Employee productivity
3. Employee satisfaction

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 Results

Employee Employee
Retention Productivity

Employee
Satisfaction

Enablers

Staff Technology Climate for

Competencie Infrastructur Action
s e

Figure 4.1 Showing the Core Measurements

Measuring Employee Retention

Employee retention captures an objective to retain those employees in whom the
organization has a long-term interest. The theory underlying this measure is that the
organization is making long-term investment in its employees so that any unwanted departures
represent a loss in the intellectual capital of the business. Long-term, loyal employees carry the
values of the organization, knowledge of organizational processes and the sensitivity to the
needs of the customers. Employee retention is generally measured by percentage of key staff
turnover.

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Measuring Employee Productivity

The simplest productivity measure is revenue per employee. This measure represents
how much output can be generated per employee.

Measuring Employee Satisfaction

The employee satisfaction objective recognizes that employee morale and overall job
satisfaction are now considered highly important by most organizations. Satisfied workers are
a precondition for increasing productivity, responsiveness, and quality and customer service.

Employee Satisfaction
Importance of Employee Satisfaction
According to Marc Drizin, an employee loyalty specialist, ―Employees are assets
with feet. They‘re the only resource companies who have made a conscious decision to return
the next day‖ [6]
. A 2003 J.D. Power and Associates survey concluded that there is another
customer builders need to focus on satisfying besides the obvious customers. Builders need to
focus on ―the rank-and-file managers and employees who work for them‖ [7].

The effects employee satisfaction has on an organization‘s business are numerous.

Some of the most relevant and profitable effects are described below.

Studies show that businesses that excel in employee satisfaction issues reduce turnover
by 50% from the norm, increase customer satisfaction to an average of 95%, lower labor cost
by 12% and lift pre tax margins by an average of 4% [8].

Not only are employee turnover, customer satisfaction, labor costs, and pre tax margins
improved by addressing employee satisfaction, but customers, products, and the company itself
are also positively affected.

Profit and growth are stimulated directly (and primarily) by customer loyalty. Customer
loyalty is a direct consequence of customer satisfaction. Customer satisfaction is heavily
influenced by customer perceptions of the value of services they receive. Value is created by
satisfied, loyal and productive employees.

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 Employees who feel a sense of teamwork and common purpose, a strong commitment
to communication, and managerial empowerment are most able, and willing, to deliver the
results that customers expect [9].

Don Wainwright, president of Wainwright Industries, a winner of the Malcolm Baldrige

National Quality Award, made the point in 2001 that ―Jack Welch uses only three indicators to
run giant General Electric. He‘ll tell you that the most effective and only numbers he needs to
know are, in order of importance: employee satisfaction, customer satisfaction and cash flow‖
[9]
. Studies completed in 1999 by the Hay Group for Fortune magazine have shown that even
the most admired companies – Intel, Coca-Cola, and GE to name a few – each embrace the
same basic company cultural values: teamwork, customer focus, innovation, and fair treatment
of employees [10].

Valued Employees

Enabling employees to freely contribute in an organization can have a substantial

positive effect on a company. Keeping employees informed and getting them involved in
decisions that affect their work builds trust and feelings of self-worth. Involving employees
helps employees feel that they are trusted and needed, which increases their contributions and
production. Jack Welch, a retired CEO of GE once stated, ―A company can boost
productivity by restructuring, removing bureaucracy and downsizing, but it cannot sustain high
productivity without cultural change, without totally involving the individual who is closest to
the work and therefore knows it better than those who manage it‖ (―The High- Performing
Contractor‖, 2004).

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 CHAPTER IV

DATA INTERPRETATION AND ANALYSIS

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 CHAPTER V

CONCLUSION

After working on a project for two months there were so many things we came across
about the working of the company with their distributors and the awareness of their
personal care product among the customers and where they really lack in like in schemes,
offers, distribution channel, working of the salesperson etc. We came to know what
shopkeepers and customers think about the ITC’s product.
We have found out loopholes where the company and distributor is weak or not focusing
upon and we gave suggestions on their weakest point which could work if they implement
and which could increase the brand awareness amongst the consumers and results increase
in sales.
We had conducted a survey in the form of questionnaire which was filled up by retailers
and that gave us the idea where is the actual problem? So we worked on it for quite some
time and gave the valuable recommendation which could further help them to increase
their market share.
Creating value for the stakeholders and the Indian economy is the cornerstone of the
Company. The Company has a strong position in the market and has a good brand name
and a very good customer base. The people relate the Company to quality and reliability,
which are the most essential components of a business‘s success. So it is clear that they
will grow stronger and will remain the most valuable and competitive corporations in the
years to come.

The Company has come forward to serve the Indian economy and environment. It has
initiated a number of programmes that are advantageous to the Indian economy. It has also
taken steps in preserving the essence of the Indian culture, which is really appreciable. The
Company‘s most important and notable initiative is e-Choupal that provides a great deal of
help to the rural society. Through all these initiatives, the Company is definitely serving
the Indian economy and has added great value to itself. It is clear from the various awards
and recognitions that the Company has received for these initiatives.

All these are made possible because of its employees and its efforts to retain the best
possible talent within the Company. ITC‘s greatest strength is its people- diverse and
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motivated people with the expertise and insight to tackle the toughest client issues. ITC
does not discriminate due to sex, age, creed, and colour. They promote drug free
environment, encourage development with excellent training.

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 CHAPTER VI

SUGGESTIONS

• Company should advertise or promote its product to increase the customer

awareness like at the time of launching; the vivel active fairness cream didn’t
advertise or promote properly.

• As the company is new in personal care products so they should offer good
margin and schemes/offers than its competitor like HUL, P&G etc. to the
retailers so that they get benefitted and focus more on selling the ITC’s
products.

• As the products are not well not known in the market due to lack of advertizing
and promotion, so to increase the product’s awareness they should try on door-
to-door selling as the more people will get to know about this method and in
tier II and tier III cities it could work well.

• Company should promote its products where the numbers of foot falls are
maximum like in malls, colleges, schools, cinema theatre etc. through
banners, hoardings, fliers etc.

• Company should arrange some kiosk in which the technician tells the
customer about the features of the products on bigger outlets or cosmetic
shops like the SPF 15 factor in vivel active fairness cream.

• Company should appoint few people who can keep record of the overall
working of the salesperson from ordering to delivering and the time taken as
well as they should focus also on the behavior of the salesperson with the
shopkeeper and should take feedback also.

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• Product should be in a twilight zone and in the accessing area of the customer
and where people stop for more time inside the store so that it could catch the
eye of the customer. And also we should promote the product where the
people stop for more time like in the crowded area and at the traffic signals.

• Products were available but not in length and depth, company should try to
make those available also.

• Company should conduct the meetings and trainings in a regular interval to

motivate the employees and others and try to find out the loopholes and ask
for the idea to be implemented to fill that loop hole and whichever idea works
in the market, will be awarded.

• There should be increase in a salary of a salesperson which would motivate

them to work hard and honestly.

• Catalog should be provided to each and every salesperson so that before

introducing any new product to the shopkeeper, they would have something
to show them visually.

• Company should give the ads in newspaper, in local channels and sending
messages through mobile to consumers as well as shopkeepers to increase the
awareness of the product and if there is any scheme/offer/prizes.

• At the time or before launching any product they can campaign about it in the
main market or near school and colleges and allot the free samples to few.

• The use of paper bags is increasing instead of polythene and in the coming
future it will be banned so they should print the image of their product on the
paper bags and promote it in the market. This will be no costly enough and
could help to increase the awareness.

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 CHAPTER VII

BIBLIOGRAPHY

BIBLIOGRAPHY
www.itcportal.com

ITC Limited

Type

Public (BSE: 500875)

Industry

Conglomerate

Founded

24 August 1910

Headquarters

Kolkata, India

Key people

Yogesh Chander Deveshwar, Chairman

K. Vaidyanath, Director,
Kurush Grant, Director,
Rajiv Tandon (CFO)

Products

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Cigarettes
Hotels
Apparel
Tobacco
Foods
Stationery
Personal Care
Paperboard and specialty papers
Printing and packaging
Matches and Agarbattis
Infotech

Revenue

US$6 billion (2009)

Employees

26,150 (2009)

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 CHAPTER VIII

ANNEXURE

QUESTIONNAIRE

Q1- what is the type of your business?

Grocery Chemist Cosmetics

Q2- Name 3 companies whose selling is very high from your counter?
Hindustan Unilever Proctor & Gamble ITC

Q3- which product do you sell most for the following classes?
Classes Grocery Chemist Cosmetics
Soap
Cream
Shampoo
Agarbattis
Safety Matches

Q4- Do you sell the ITC’s personal products like cream, shampoo, soap etc.?
Outlets Yes No
Grocery
Chemist.
Cosmetics.

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Q5- Does ITC gives you schemes/offers etc?
Often Sometimes Rarely Never

Q6- from where did you get the information?

Letter from the company Representative Stockiest/distributor

Q7- What is your satisfaction level with the following companies ? Mark out of 5?
Company Name Rank
HUL
P&G
ITC
DABUR
JOY

Q8- What are the factors attract you most to sell the product of the particular
company?
Margin Offers Schemes

Q9- Which company gives you the overall benefits to sell the product?
HUL P&G ITC DABUR

Q10- Are you satisfied with the distribution channel and supply chain provided by
the ITC Company and its distributor?
Yes No

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