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    Aashi Agarwal 002 Bba

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    Naina Goyal
    This document evaluates ITC Ltd.'s distribution of fast-moving consumer goods (FMCG) products in chemist channels in Kolkata. It analyzes the potential and current market position of ITC FMCG products, and examines the market share and strategies of competing companies like HUL, P&G, and Johnson & Johnson. The research methodology involved surveying 150 chemist outlets. Key findings show ITC products in only 16% of outlets, compared to over 89% for HUL and 94% for P&G. For ITC to gain market share, it needs to develop a "carrier product" to persuade outlets to stock other ITC products, and emphasize paid displays.

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    Aashi Agarwal 002 Bba

    Uploaded by

    Naina Goyal
    47 views13 pages
    This document evaluates ITC Ltd.'s distribution of fast-moving consumer goods (FMCG) products in chemist channels in Kolkata. It analyzes the potential and current market position of ITC FMCG products, and examines the market share and strategies of competing companies like HUL, P&G, and Johnson & Johnson. The research methodology involved surveying 150 chemist outlets. Key findings show ITC products in only 16% of outlets, compared to over 89% for HUL and 94% for P&G. For ITC to gain market share, it needs to develop a "carrier product" to persuade outlets to stock other ITC products, and emphasize paid displays.

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    This document evaluates ITC Ltd.'s distribution of fast-moving consumer goods (FMCG) products in chemist channels in Kolkata. It analyzes the potential and current market position of ITC FMCG products, and examines the market share and strategies of competing companies like HUL, P&G, and Johnson & Johnson. The research methodology involved surveying 150 chemist outlets. Key findings show ITC products in only 16% of outlets, compared to over 89% for HUL and 94% for P&G. For ITC to gain market share, it needs to develop a "carrier product" to persuade outlets to stock other ITC products, and emphasize paid displays.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    47 views13 pages

    Aashi Agarwal 002 Bba

    Uploaded by

    Naina Goyal
    This document evaluates ITC Ltd.'s distribution of fast-moving consumer goods (FMCG) products in chemist channels in Kolkata. It analyzes the potential and current market position of ITC FMCG products, and examines the market share and strategies of competing companies like HUL, P&G, and Johnson & Johnson. The research methodology involved surveying 150 chemist outlets. Key findings show ITC products in only 16% of outlets, compared to over 89% for HUL and 94% for P&G. For ITC to gain market share, it needs to develop a "carrier product" to persuade outlets to stock other ITC products, and emphasize paid displays.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 13

    EVALUATION OF DISTRIBUTION OF ITC FMCG

    PRODUCTS IN CHEMIST CHANNEL IN KOLKATA.


    AASHI AGARWAL
    BBA
    ROLL-002-BBA-118
    INTRODUCTION
    HISTORY AND EVOLUTION OF ITC LTD.

    1. ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
    company of India. It later changed its name to I.T.C. Limited in 1974.
    2. ITC’s Packaging & Printing business was setup in 1925 as a strategic backward
    integration for ITC’s Cigarettes business. It is today India’s most sophisticated
    packaging house.
    3. In 1979, ITC entered the Paperboards business ITC Bhadrachalam Paperboards ,
    which is the market leader in India today.
    4. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint
    venture. In august 2002, Surya Tobacco became a subsidiary to ITC Limited and its
    name was changed to Surya Nepal Private Limited.
    5. Though the first six decades of the company’s existence were primarily devoted to
    the growth and consolidation of the cigarettes and Leaf Tobacco business, the later
    part of the seventies ITC was recognized as a multi-business portfolio encompassing a
    wide range of business- Cigarettes & Tobacco, Hotels, Information Technology,
    Packaging, Paperboards & Specialty Papers, Agri Business, Foods, Lifestyle
    Retailing, Education & Stationery & Personal Care – the full stops were removed
    effective September 18,2001. The Company now stands rechristened ‘ITC Limited’.
    OBJECTIVES OF THE SURVEY

    1. To analyze potential of FMCG products in the chemist channel.


    2. To evaluate the present market position of ITC FMCG products in the
    chemist channel.
    3. To find out the market holding of competing FMCG companies in the
    pharmaceutical outlets.
    4. To find out the carrier brands of the competing companies to foray into
    the market
    5. To find out the advantages of the competing brands in the market due to
    their long term existence in FMCG market.
    6. To collect information about the total monthly sellout of different cosmetic
    products in the chemist outlets.
    7. Collecting information about the paid displays of different brands in the
    outlets.
    MARKET SHARE OF ITC LTD
    • Despite its eponymous stature in the cigarette business,
    nearly 21% of ITC’s Rs 21,168 crore of 2010-11 net revenues
    come its non-cigarette FMCG business
    • In the past 5 years the FMCG segment has emerged as ITC’s
    largest revenue engine , clocking a growth of 35% CAGR.
    • The company has been cutting its losses in the non-cigarette
    FMCG business to Rs 297 crore in 2010-11 from Rs 483 crore
    in 2008-09
    • The food business recorded its maiden profit last fiscal and
    analyst say the stationery product business is not too far
    from profitability.
    • Leading broking firms like HDFC securities and Angel Broking
    are betting that ITC’s non-cigarette FMCG business would
    breakeven by next financial year.
    • It operates the second biggest hotel chain in India, with over
    3000 rooms in luxury segment and 2400 rooms in the
    Fortune segment.
    SIX SUCCES MANTRAS OF ITC LTD

    • SEGMENTATION : Creating brands from scratch with no history and lineage,


    ITC used clear segmentation across its five product lines and the audience, each
    brand was meant for.

    • GROUP SYNERGY : Once the five products were created and communication
    strategies set, ITC leveraged its properties like hotel, foods, and apparel store
    network to retail these brands.

    • COMUUNICATION STRATEGY : Like HUL, these brands sport Western names


    and different communication. Essenza and Fiama, meant for the elite, have
    English communication, while Vivel & Superia use Hindi.

    • BRAND EXTENSIONS : Selective extensions as it doesn’t want to confuse


    consumer with too many irrelevant brand extension & sub-brands. The Essenza
    range is the only exception.

    • BRAND AMBASSADORS : ITC uses brand amassadors strategically. While for


    the Fiama & Vivel ranges it has roped in brand ambassadors, for the Superia &
    Essenza ranges the key TG is the real king.

    • PACKAGING : Since packaging plays a key role in product differentiation , ITC


    uses it to the hilt. It has taken foreign experts help to make its products stand out
    from competition
    FMCG GETS HOOKED ON CHEMIST !
    If you thought that your chemist down the road made money
    only by selling prescription drugs, think again. According to a
    survey conducted by ORGMARG, the turn over of chemist across
    the country has taken a dramatic turn with as much as 45 % of
    their turnover coming from FMCG products. In metros the
    proportion of business from sale FMCG, according to the study,
    has gone upto as high as 55%.It points out that as much as 75%
    of the chemist shops stock premium soaps as well as
    toothpastes , 55% of the them stock talcum powder, another
    55% stock beverages , 50% of them stock shampoos, hair oil and
    soap. The shift in preference is justified as FMCG companies
    offer 25-30% returns. The other point is that fierce competition
    in the market forcing FMCG companies to tap every sales
    channel. The other factor for FMCG companies is the wider
    reach of drug stores offer. There are about lakh retail chemist
    stores in India, clocking annual sales of Rs 400000 crores.
    RESEARCH METHODOLOGY

    • Preparation of questionnaire.
    • Visiting 150 premium Chemist outlets all over Kolkata.
    • Independent Self Service.
    • Collecting information about the servicing of products
    belonging to ITC and its rival companies HUL, P&G,
    RECKITT BENCKISER, JOHNSON & JHONSON, GARNIER.
    • Collecting data about the total monthly sell-out of
    different category of cosmetic products.
    • Nothing down the paid displays of different outlets.
    • Summarizing all the data the has been filled up in the
    questionnaire.
    • Arranging all the data in a table format.
    • Giving conclusions based on the calculation of the
    arithmetic mean.
    FINDINGS
    SERVICING BY DIFFERENT COMPANIES:
    COMPANIES NUMBER OF PERCENTAGE
    OUTLETS(150)
    Johnson & Johnson 150 100%

    Reckitt Benckiser 150 100%


    ITC 24 16%
    HUL 134 89.33%
    P&G 142 94.6%
    Garnier 78 52%

    Johnson & Johnson & Reckitt Benckiser occupies the highest market
    share serviced by all the chemist outlets, followed by P&G & HUL.
    Garnier is gaining market share in the chemist channel.
    INFERENCES
    1. Thus ITC to enter the chemist channel and gain
    market share it must develop a certain product
    based on which it can persuade the chemist outlets
    to store other ITC cosmetic products.
    2. ITC should develop products like anti bacterial
    soaps, anti lice shampoos, talcum powder, soaps or
    diaper or sanitary napkins.
    3. The carrier product will help in gaining access into
    the chemist channel but in order to gain market
    share ITC should follow it up by introducing other
    products into the chemist channel like, men’s
    fairness cream, deodorants, face wash etc.
    4. ITC should emphasize on the availability of paid
    displays of its products in the chemist outlets to
    bring the product further in the notice.
    SWOT ANNALYSIS OF ITC LTD
    STRENGTHS WEAKNESS

    1.Strong brand presence, excellent products. 1. ITC is still dependent on its tobacco
    2. Excellent research & development facilities. revenues and people have cheaper
    3. ITC limited employees over 25,000 people. substitutes and other brands.
    4. Diversified Products & services, including 2. Hotel industry has not been able to create
    FMCG, Hotel chains etc. a huge market share.
    5.Over 6500 E-choupal CRS activities and
    sustainability initiatives enhance ITC’s brand
    image reaching over 25,000 people.

    OPPURTUNITIES THREATS

    1. Tap rural markets and increase penetration 1. Strict govt regulations and policies
    in urban areas. regarding cigarettes.
    2. Mergers and acquisitions to strengthen the 2. Intense and increasing competition
    brand. amongst other FMCG companies and hotel
    3. More publicity of hotel chains to increase chains.
    market share. 3. In retail thereby allowing international
    brands.
    CONCLUSION
    The chemist outlets are gradually turning out to
    be attractive ventures to the leading FMCG
    companies and companies like HUL, P&G,
    JOHNSON & JOHNSON, RECKITT BENSIKER have
    already made a clear headway in the market. Due
    to their long term foray into the FMCG markets.
    ITC being a new player in the FMCG sector is
    gradually gaining ground both in actual scenario
    and in the chemist outlets. One advantage
    enjoyed by the competing FMCG companies is
    that they have all developed a certain carrier
    brand to get a break through in the chemist
    outlets. ITC needs to develop such a carrier brand
    to foray into the chemist channel.
    BIBLIOGRAPHY

    1. www.itcportal.com
    2. www.businessstandard.com
    3. www.wikipedia.com

    THANK YOU

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